Investor Protection

Securities Litigation

Purchasers and sellers of securities – and sometimes holders – can pursue litigation against issuers, underwriters and individuals who caused injury by negligent misstatements or outright fraud.  Sianni & Straite LLP lawyers have experience in pursuing all aspects of securities litigation, including fraud claims and prospectus liability claims under federal, state and foreign law, and our New York office enables us to practice in the Southern District of New York, the most important federal court for securities litigation.

Investors often have several options when a fraud or other material misstatement has become public.  Typically, an investor could seek to lead a class action on behalf of all similarly situated investors, or could “opt out” of the class and assert an independent claim, or could simply remain a passive class member and allow another investor to represent the class and pursue claims on its behalf.  We can work with investors to evaluate the claims and the investor’s damages, to determine the best course of action, and to pursue that course as appropriate.

Corporate Governance Litigation

Shareholders are increasingly demanding a voice in corporate matters, for example in areas such as executive compensation and the structure of a company’s board of directors.  Oftentimes, litigation creates a perfect opportunity for shareholders to obtain commitments from corporate defendants that can deter or prevent future misconduct.  We are sensitive to these opportunities and wherever possible can seek non-monetary remedies that benefit our investor clients.

Hedge Fund Litigation

Hedge funds present difficult challenges for investors who must resort to litigation to remedy wrongdoing by the fund (or the fund manager).   Typically, the fund is separated from the manager by several layers of shell companies incorporated in different jurisdictions, and administration is often outsourced to an independent entity.  Direct claims against the managers can be difficult (if not impossible), and sometimes derivative claims on behalf of a fund can be the only route for investors.

Most onshore hedge funds are organized under Delaware law, and it is essential that investors in alternative investment vehicles select Delaware counsel experienced in litigating in this complex area.  Furthermore, even onshore funds often invest solely through offshore master funds, and familiarity with the relevant laws of certain offshore jurisdictions (including Bermuda, BVI and the Cayman Islands) is important.

Sianni & Straite LLP is able to handle all aspects of litigation on behalf of investors in hedge funds.  We are based in Delaware, which can sometimes be the only state with jurisdiction over the defendants.  We also do not represent underwriting banks or hedge fund administrators, leaving us free of conflicts and thus able to pursue claims against all relevant parties, including funds, managers, and administrators.

FINRA Arbitrations

Individual investors often rely on investment advisors, asset managers or brokers for guidance and advice.  When investors suffer losses because their trusted agent or advisor violates basic principles of suitability, breaches his or her fiduciary duties, or in some cases steals money, the deck is stacked against the investor.  Often, the investor has no choice but to arbitrate, and important discovery tools are not available.

Nevertheless, individual investors are not completely without remedy, and Sianni & Straite LLP is uniquely positioned in Delaware to pursue claims when an individual investor’s loss is due to the malfeasance of a trusted advisor or fiduciary.  We are able to draw on years of securities litigation experience while providing the individual attention that only a small firm can bring.

Advisory

The most important service we can provide to an investor client is case evaluation.  Knowing whether to litigate is as important as knowing how to litigate, and providing thorough case evaluation to all clients prior to litigation is an integral part of our core mission.  We are also available to act as evaluation counsel for clients when selecting other firms to pursue litigation.

Sianni & Straite LLP can also advise investors looking to invest in companies facing litigation, and evaluate and handicap litigation risk.  “Bet the bank” litigation is increasingly common, and the outcome of a single court case can materially affect the share price of a company.  We are able to evaluate – and continually monitor – litigation for clients seeking to invest in defendants and plaintiffs involved in litigation.