Securities Litigation

Overview

Most companies with shareholders grapple with securities issues. Securities laws are complex and highly specialized, and lawsuits and regulatory actions alleging securities-based fraud or other misconduct can create unwanted adverse publicity and exposure to significant monetary or regulatory liability. You need seasoned professional advocates who can advise you on how to mitigate risk and defend you from any fallout when litigation is on the horizon. Our lawyers’ successes have been recognized across the country by many sources, including The Best Lawyers in America and Chambers USA. The group is one of only two firms in the Southeast to have a Chambers USA Band 1 ranking in Securities Litigation (Georgia). 

Alston & Bird’s securities litigators know the breadth of securities actions and can help you properly address challenges in securities class actions, derivative litigation, M&A deal litigation, regulatory investigations, appraisal actions, D&O claims against management and board members, and other transaction-based litigation. Our lawyers have a long history of working collaboratively with in-house teams and serving as an adjunct to your existing legal department. We provide clear and pragmatic advice to communicate to your key stakeholders. We have a strong trial track record and are not afraid to try a case. That said, clients do not always want a lengthy public courtroom fight, and we have a strong record of securing early dismissals and favorable settlements. 

Regardless of industry, Alston & Bird’s Securities Litigation Group is a resource that leaders of public companies rely on for their most important securities issues, whether on immediately pressing matters or long and difficult securities disputes. We have advised clients in billions of dollars’ worth of M&A deals and have never had a deal blocked or delayed. Our pre-trial dismissal rate in securities litigation is well above the national average. We help our clients develop effective strategies that can head off potential challenges and see cases all the way through to the courtroom when disputes cannot be avoided.

Experience

• Representing Mohawk Industries Inc. in a putative shareholder class action filed in the Northern District of Georgia, alleging that the defendants made materially false and misleading statements related to improper revenue recognition, intentional overproduction, and improper inventory valuation.  
• Representing MiMedx Group Inc. in a putative securities class action filed in the Northern District of Georgia. The plaintiff alleges that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act, related to statements about the company’s financial results. The court granted our motion to dismiss in its entirety and entered a judgment in the company’s favor. In re MiMedx Group Inc., No. 1:18-cv-00830 (N.D. Ga.). 
• Representing Grand Canyon Education Inc. and certain of its executive officers in a consolidated shareholder class action filed in the District of Delaware. The complaint alleges that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act in connection with statements related to the sale of a subsidiary. The court granted our motion to dismiss, and the plaintiffs have filed an amended complaint. In re Grand Canyon Education Securities Litigation, No. 1:20-cv-00639 (D. Del.).
• Represented HF Foods Group Inc. and certain of its present and former officers and directors in a consolidated putative shareholder securities class action filed in the Central District of California. The complaint generally alleged that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act in connection with certain disclosed related party transactions and use of company funds. The court granted our motion to dismiss and ultimately dismissed the action with prejudice. Mendoza v. HF Foods Group, et al., No. 2:20-cv-02929 (C.D. Cal.).
• Representing 3D Systems Corporation and certain of its current and former officers and directors in a putative shareholder securities class action filed in the Eastern District of New York. The complaint generally alleges that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act in connection with statements about the company’s financial results. 
• Represented Avanos Medical (formerly known as Halyard Health) and two of its former officers as lead counsel in a shareholder securities class action in the Southern District of New York, where the court granted our motion to dismiss. Jackson v. Halyard Health Inc., et al., No. 1:16-cv-05093 (S.D.N.Y.). The court subsequently denied the plaintiff’s post-judgment motions, which was affirmed by the Second Circuit. Jackson v. Avanos Medical Inc., et al., No. 1:16-cv-05093 (S.D.N.Y.), aff’d, 960 F.3d 94 (2nd Cir.). 
• Represented Keryx Biopharmaceuticals Inc. and two of its officers in two putative shareholder securities class actions filed in the Southern District of New York. The plaintiffs alleged that the defendants made false and misleading statements about the results of drug trials that tested the efficacy of a cancer drug. The court granted our motion to dismiss. In re Keryx Biopharmaceuticals Inc. Securities Litigation, Nos. 1:13-cv-00755 and 1:13-cv-01307 (S.D.N.Y.).
• Represented Schweitzer-Mauduit International Inc. and certain of its directors and officers in a putative securities class action filed in the Northern District of Georgia. The plaintiff alleged that the company misled investors about its relationship with a large customer and claimed that the defendants also made misstatements about the strength of its intellectual property portfolio. The court dismissed the complaint due to the plaintiff’s failure to plead any actionable statements or scienter. Rather than attempt to replead, the plaintiff voluntarily dismissed the claims with prejudice. City of Pontiac General Employees Retirement System v. Schweitzer-Mauduit International Inc., 806 F. Supp. 2d 1267 (N.D. Ga.). 

We have also represented the following clients, among others, in securities litigation matters:

• Coca-Cola Enterprises
• Dell Technologies
• Wendy’s
• Aflac
• Astec Industries
• LHC Group
• Ebix
• Sonoco Products
• CheckFree

Videos

Andy Sumner | SPAC-Related Class Actions

The number of special purpose acquisition company (SPAC) IPOs has skyrocketed. Securities Litigation partner Andy Sumner discusses the increase in SPAC-related class actions, issues to watch, and future litigation activity to look out for.