Securities Enforcement and Litigation

The securities enforcement and litigation practice of Akin Gump Strauss Hauer & Feld LLP is one of the premier practices of its kind in the United States. A national team of experienced and highly qualified lawyers has achieved great results over many years in helping clients navigate securities-related investigations and litigation. Our clients include leading public companies and their officers and directors, as well as many of the country’s largest and most sophisticated hedge funds and private equity funds, broker-dealers, investment banks and public accounting firms. We routinely represent clients—including companies and individuals based in the United States and around the world—in investigations conducted by the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), self-regulatory organizations such as the Financial Industry Regulatory Authority (FINRA) and state regulators.

Our securities enforcement lawyers are also members of our white collar defense practice, in recognition of the fact that securities investigations often result in parallel criminal and civil enforcement efforts by the government. Complementing all of this knowledge and experience, our practice includes leading civil securities litigators who routinely defend a broad array of clients in shareholder class actions and derivative litigation. By collaborating, lawyers in the securities enforcement and litigation practice offer clients a nationwide civil, criminal and regulatory defense powerhouse across the spectrum of securities litigation.

Collectively, our securities litigators have many decades of practical, hands-on experience, both in private practice and, in many instances, as government attorneys for the SEC, the Department of Justice (DOJ) and U.S. Attorney’s offices prior to joining Akin Gump. Our team’s outstanding reputation reaches from the headquarters of the SEC and CFTC to regional enforcement offices to federal courts to international directors and officers (D&O) insurance carriers.

We work closely with in-house legal and management teams to achieve our clients’ objectives in securities matters. We believe it is essential, at the outset of a new securities investigation or lawsuit, to identify a sound strategy that is calculated to lead to a speedy and favorable resolution. In some cases, it is advisable to work cooperatively with the government; in other cases, a more defensive posture is appropriate. Regardless of the strategy, we have a reputation for credibility and effectiveness in our dealings with the government and adversaries in private litigation.

As the securities environment becomes more challenging—increased enforcement, potentially crippling sanctions and penalties, more private class actions and higher settlement costs—the Akin Gump team has the experience and know-how to help clients resolve investigations and lawsuits effectively. Our deep understanding of SEC, CFTC and other investigations allows us to develop the most effective strategies to resolve the inquiry or litigate. Our success rate on early motions to dismiss private class actions is better than twice the national average and our track record of achieving settlements that are less than half the national average can prove to be a company’s lifeline.

SEC and Regulatory Investigations and Enforcement Actions

In recent years, the SEC has dramatically ramped up the pace and intensity of its investigations and enforcement proceedings. Stung by the fallout from the Madoff scandal, the SEC’s leadership has moved to reorganize the Division of Enforcement along the lines of the U.S. Attorney’s Office for the Southern District of New York, with reduced bureaucracy, more specialization and an emphasis on individual cooperation. In like fashion, the CFTC Division of Enforcement has shown unprecedented vigor and aggressiveness in its investigations of trading activity in the nation’s commodity markets. Finally, FINRA is increasing its investigations into the trading and reporting activities of its members.

Akin Gump lawyers routinely and effectively handle a wide variety of securities-related investigations and proceedings in a wide array of subject areas. We have broad and deep experience in matters arising from alleged insider trading, market manipulation, accounting improprieties, disclosure problems and SEC reporting, and violations of the Investment Advisors Act. We work regularly with the staffs of the SEC, CFTC, FINRA and state and foreign regulatory authorities in the District of Columbia, New York, San Francisco, Los Angeles, Atlanta, Fort Worth and other regional offices. Our team includes former senior SEC staff members and former federal prosecutors who specialized in criminal securities enforcement. Collectively we have decades of experience defending and prosecuting securities cases. That experience gives us a deep understanding of how the SEC enforcement staff approaches investigations, and which strategies are most likely to be effective in responding to an inquiry from the SEC. If we are unsuccessful in resolving an investigation satisfactorily, we are prepared to litigate against the government—to trial if necessary. Our attorneys have an outstanding track record in litigated cases against the SEC and the DOJ, including winning jury verdicts.

Class Actions

Our lawyers have deep experience and outstanding success in defending clients in securities fraud class actions across the country. In the past five years alone, our lawyers have defended public companies in more than 50 securities class actions, and our team has faced all types of securities claims—from accounting fraud and restatements to aggressive projections and missed forecasts. We have an outstanding record in obtaining complete dismissals early in a case either by crafting a successful motion to dismiss or by persuading plaintiffs to voluntarily dismiss the complaint. Where a case does proceed further, we are extremely adept at managing the discovery process and positioning the case to achieve a highly favorable settlement or successful summary judgment motion. When necessary, we will take securities cases to trial and win.

Derivative Actions

The plaintiffs’ bar is filing derivative actions—where a shareholder files a lawsuit purportedly on behalf of the company and alleges breach of fiduciary duty—with increasing frequency. These lawsuits are often filed in conjunction with a securities fraud class action, but also can be free-standing. Akin Gump is both experienced in and successful at defending derivative actions. For example, we possess the know-how to successfully attack “demand futility” allegations, and we can advise whether it makes sense to establish a special committee. Our representations include scores of public companies and their officers and directors in derivative actions arising from mergers, acquisitions, executive compensation, related-party transactions, misappropriation of corporate opportunities and extraordinary corporate transactions.

Avoiding Litigation Risks

Every public company and soon-to-be-public company can benefit from a review of its disclosure and corporate governance practices. We offer our public company clients a securities litigation risk audit that provides a comprehensive, tailored examination of a company’s risk for securities litigation, including—