Securities Class Action Defense

Areas of Emphasis

  • Shareholder Class Action Defense
  • Shareholder Derivative Suit Defense

Practice Overview

Members of the Securities Litigation and Enforcement Group frequently represent public companies and their officers and directors in the defense of shareholder securities fraud class actions across the United States.  Many of our successes are at the pleading stage, where early dismissals have enabled our clients to avoid the intrusion, disruption and expense of protracted discovery.  Where outright dismissal is unattainable, we draw on our extensive experience to identify all available defenses and marshal the often voluminous evidence necessary to prove them, working closely with our clients and economists, accountants and other professionals to assemble the facts and expert testimony to defend the class-based claims. 

Our highly skilled attorneys also are prepared to take these matters to trial.  In fact, Reed Smith is one of the few firms to have actually tried 10b-5 class actions to judgment.  We have won unqualified victories for the defense in cases included in the National Law Journal’s annual review of “Top Jury Verdicts”:  In re Tricord Systems, Inc. Sec. Litig., (D. Minn.) (jury verdict in favor of company, its CEO and CFO in securities class action against NASDAQ-listed manufacturer of computer mainframes); and Schwartz v. System Software Assocs., (N.D. Ill.) (jury verdict in favor of company, its CEO and CFO in 10b-5 class action against NASDAQ-listed software developer).