Securities Litigation

Lawyers at Gradstein & Marzano have significant experience in prosecuting and defending securities and shareholder litigation, and in providing representation in SEC enforcement actions. We have represented plaintiffs and defendants in securities fraud litigation, receiverships and investigations by the SEC and the Departments of Corporation for multiple states. We also handle matters for and against investors, accountants, auditors, broker/dealers, and corporations, their officers and directors.

Our cases have involved complex issues of fraud, fraudulent inducement, misrepresentation, mismanagement, churning, unsuitable investments and other self-interested conduct raising breach of trust and misconduct claims, negligence and breaches of fiduciary duty relating to investments governed by the SEC, the Securities Act of 1933, the Securities Act of 1934 and other applicable federal and state fraud laws. Those cases have sought relief on behalf of investors seeking damages and redress for losses based on insider trading, fraud and mismanagement.

The scope of our experience extends to representation in informal inquiries, formal investigations and receivership matters overseen by the SEC and other state and federal governmental agencies, the representation of investors and broker/dealers in NASD/FINRA proceedings, and the prosecution and defense of corporations, officers and directors, broker/dealers, and accountants/auditors in securities and shareholder litigation.

Representative cases lawyers at Gradstein & Marzano have handled include:

Defending and successfully settled a federal class action on behalf of an international CPA firm (now a Big Four audit firm) in a case alleging audit mismanagement of hedge funds and fund-of-funds in the Bernie Madoff and Thomas Petters schemes
Obtaining a $102 million judgment in federal court on behalf of Pink sheet-traded Veltex Corporation on behalf of the newly constituted non-fraudulent Board of Directors and officer group on claims for fraud, breaches of fiduciary duty and malpractice in securities “pump and dump” scheme
Representing the former CEO of the Fatburger national fast food chain in actions for breach of fiduciary duty and contract, wrongful termination, and for minority shareholder and shareholder dilution claims; cases settled confidentially
Representing stockholders in a direct action against major Korean bank for fraud and breach of fiduciary duty claims
Serving as a Special Prosecutor by the Chief District Judge for the District of Nevada to prosecute contempt proceedings in an international banking and securities fraud case
Representing an SEC-appointed Receiver and achieving a multi-million dollar recovery for victims in an offshore banking fraud and arbitrage trading scheme, involving litigation in the U.S. and globally

Our lawyers have also served as co-counsel and local counsel on numerous securities litigation matters brought in federal courts in California.