Securities Class Actions & Derivative Litigation

Latham’s leading securities litigation team routinely helps clients resolve securities class actions and shareholder derivative actions in the most effective and efficient manner possible, most often by obtaining early dismissal.

Such increasingly common claims often arise following major announcements or events leading to stock price declines.

We represent companies, officers and directors, auditors, consultants, and underwriters in both federal and state court on the entire range of IPO-related and other securities issues, from alleged misrepresentations in offering documents — including under Sections 11, 12, and 15 of the Securities Act of 1933 — to securities fraud class actions — including under Section 10, SEC Rule 10b-5, and Section 20 of the Securities Exchange Act of 1934 — as well as stock price and market manipulation cases and attacks by short-sellers and bear raids.

Securities Class Actions

Latham boasts one of the most experienced and successful securities litigation groups in the United States and globally, with a market-leading position defending post-IPO securities litigation for some of the most dynamic, high-growth companies in the world. Our securities litigators are recognized as among the best lawyers in the field, and include former federal prosecutors, senior staff of the SEC Division of Enforcement, and Supreme Court, federal, and state court judicial clerks.

We frequently succeed in disposing of securities class actions through early motion practice, insulating clients from business disruption and ending matters as cost-effectively as possible. For cases that do proceed to discovery, we use an efficient team of seasoned lawyers to cut through the clutter and identify key pieces of evidence to develop a compelling narrative. When trial is unavoidable, our extensive trial experience has earned our team a formidable reputation, providing clients with a distinct advantage in the courtroom. Because of our trial-ready posture, coupled with aggressive and creative pre-trial litigation strategies, we successfully resolve most matters well short of trial.

Shareholder & Derivative Litigation Defense

We routinely defend clients in shareholder derivative lawsuits in which shareholders seek to compel a company — public or private — to sue its officers and directors, auditors, partners, subsidiaries, and anyone else who allegedly damaged the company.

We draw on our extensive experience to help clients navigate and defeat these cases, which involve a complex intersection of corporate governance and derivative liability. We routinely win dismissal on the pleadings, defeating shareholder standing before any discovery is taken. When these cases do proceed past a motion to dismiss, we are well-equipped to defend them and prevail at trial. We have guided clients to successful resolution of derivative claims involving every type of alleged corporate wrongdoing, from fraud, failure of oversight, and professional malpractice to ESG-related claims, cross-border issues, restatements, and violation of laws.

Latham handles all stages of derivative disputes, including:

• Books and records demands
• Advising boards in responding to other shareholder demands
• Guiding internal investigations
• Establishing a record of the board’s exercise of sound business judgment
• Representing special litigation committees
• Defending the targets of derivative suits, officers, directors, and professionals

Our team brings extensive insight and experience to counseling clients through the complexities of such delicate matters, winning or settling cases with minimal corporate disruption.