Successes
In re Globalstar Securities Litigation (Southern District of New York). Cohen, Milstein, Hausfeld & Toll, P.L.L.C., lead counsel for the plaintiff class, negotiated a $20 million settlement of this securities fraud lawsuit near the end of the second week of the trial in the case. This is one of only a handful of securities class actions to go to trial since the passage of the Private Securities Litigation Reform Act of 1995. It involved claims that defendants made misleading statements about projected revenue in Globalstar’s first year of business operations, one of the most difficult types of cases for plaintiffs to prove. In preliminarily approving the settlement, Judge P. Kevin Castel remarked that plaintiffs’ counsel had “done a terrific job in presenting the case for the plaintiffs.”
In re Lucent Technologies Securities Litigation (District of New Jersey). The class portion of the settlement in this massive securities fraud class action amounted to over $500 million in cash, stock and warrants and ranks as one of the largest securities class action settlements ever. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. represented one of the co-lead plaintiffs in this action, The Parnassus Fund, a mutual fund based in San Francisco, California.
In re Merrill Lynch & Co., Inc. Research Reports Securities Litigation (Southern District of New York). As Co-Chair of the Plaintiff’s Executive Committee, Cohen, Milstein, Hausfeld & Toll, P.L.L.C. negotiated a $125 million settlement of 21 class-action lawsuits against Merrill Lynch & Co. alleging that investors suffered massive loses by following its dishonest stock recommendations, including those from its former star technology analyst, Henry Blodget. This settlement was granted final approval by the Court. In doing so, Judge John F. Keenan commended "counsels' skillful and zealous representation over a six-year period," and found the "high quality of representation provided by Lead Counsel is evident from the extensive record of this case."
In re Southmark Securities Litigation (Northern District of Texas). Cohen, Milstein, Hausfeld & Toll, P.L.L.C. served as co-lead counsel in this case, which resulted in settlements valued at over $70 million. Recoveries were obtained from the company’s former auditors, from claims made in Southmark’s bankruptcy proceedings, and from Securities and Exchange Commission proceedings involving Drexel Burnham Lambert and Michael Milken.
Norman v. Salomon Smith Barney (Southern District of New York). As one of Plaintiffs’ Lead Counsel, Cohen, Milstein, Hausfeld & Toll, P.L.L.C. negotiated a $50 million settlement of a class action lawsuit on behalf of customers of Salomon’s Guided Portfolio Management program. The lawsuit alleged that, instead of acting in the best interests of its customers, Salomon invested their money in companies that would boost Salomon’s investment banking business. Moreover, Salomon did not tell its customers that its securities analysts were compensated based on the investment banking business they generated.
In re Nextel Communications Securities Litigation (District of New Jersey). Cohen, Milstein, Hausfeld & Toll, P.L.L.C. served as co-lead counsel in this case involving false and misleading statements made by defendants concerning Nextel’s technology and the role of Motorola, Inc. as an alleged control person of Nextel. A settlement in this case, valued at $27 million dollars, was reached for the benefit of purchasers of Nextel securities.
In re PSINet Inc. Securities Litigation (Eastern District of Virginia). Cohen, Milstein, Hausfeld & Toll, P.L.L.C. played a key role in this case, which was complicated by PSINet’s filing for bankruptcy during the litigation. Despite the bankruptcy filing the case was resolved by a settlement of almost $18 million.
