Experienced and Discreet Houston-Based Lawyers For Securities Litigation
Robert Burford and Brent Perry and the attorneys at Burford Perry LLP deal with securities litigation on a daily basis. In 2017, they successfully defended a corporate executive accused of violations of the Texas Securities Act and provided representation for individuals accused of federal securities regulatory violations. On the other side of the docket, they represent individuals who are victims of securities fraud involving millions of dollars.
Robert Burford’s practice has included high profile defense successes in the Azurix Securities Litigation and large recoveries for the Houston Police Officers Pension System. Brent Perry has handled multimillion dollar matters involving stock price manipulation and investment banking misrepresentations and fraud.
Securities law is incredibly complex. Parties involved in securities litigation often have a lot at stake, and emotions run high. All securities litigation needs to be handled with discretion and finesse. At Burford Perry LLP, our attorneys have extensive experience on both sides of the docket – defending those accused of securities fraud, and representing the victims of securities fraud. This gives us unique insight into how the other side thinks. Our attorneys are uniquely qualified to help you resolve your securities litigation issues.
Securities Law Claims
The elements of a private securities fraud claim are, in general, (1) a material misrepresentation (or omission), (2) scienter, i.e., a wrongful state of mind, (3) a connection with the purchase or sale of a security, (4) reliance, often referred to in cases involving public securities markets (fraud-on-the-market cases) as ‘transaction causation’; (5) economic loss; and (6) ‘loss causation,’ i.e., a causal connection between the material misrepresentation and the loss. Owens v. Jastrow, 789 F.3d 529, 535 (5th Cir. 2015). Fraud claims can be initiated by state or federal regulatory agencies or by private parties. Individuals often encounter securities law fraud when they are solicited for large investments by persons they believe they can trust.
Types of Securities Litigation
The relationship between individuals purchasing securities and parties selling securities is meant to be beneficial. Each party owes certain duties to the other. There are extensive regulations imposed by state law and by federal agencies like the U.S. Securities and Exchange Commission (SEC) that define the relationship. Common causes of securities litigation include:
- Stock fraud – Securities litigation regularly involves the deceptive trade practice called stock fraud or securities fraud. These claims occur when a party induces someone to purchase stock based on false information, leading to losses for the investor. Allegations of stock fraud must be taken very seriously, as the claims regularly involve large damages for all parties.
- Derivative lawsuits – The directors and officers at a company are charged with defending and pursuing all legal claims owned by company. If they fail to do so, shareholders in the company can often bring a legal action on behalf of the company, called a shareholder derivative lawsuit. Derivative lawsuits have technical requirements, particularly for closely held companies, and require attorneys who know securities laws.
- Stockbroker fraud – Many investors rely on the expert advice of stockbrokers and other investment experts for the purchase and sale of stocks and bonds. If a stockbroker gives negligent investment advice that causes financial losses, investors may seek compensation. Our attorneys have represented both investors and brokers, both in litigation and in arbitration.
- Misrepresentations and omissions – When investment professionals provide false information or fail to disclose all relevant information when selling investments, they may be violating federal and state securities laws. Even if the claims do not rise to the level of fraud, investors may still recover their financial losses.
- Illegal buying and selling of securities – There are many laws and regulations that govern the purchase and sale of securities. Insider trading, short selling, and churning often lead to investor claims. Our attorneys have experience helping investors who have been harmed pursue compensation.
The Complexities of Securities Litigation
There are numerous federal and state laws regarding securities. Accusations of misconduct require thorough investigations by seasoned professionals. Experienced securities litigation lawyers will be able to coordinate with government agencies, discreetly conduct investigations, and protect the interests of their clients. There is no one way to resolve securities disputes. Individuals or companies entering into securities litigation need lawyers who can analyze all relevant facts and craft unique and beneficial resolutions.
Resolving Securities Litigation
Sometimes securities litigation can be resolved in out of court settlement negotiations, but other times only court proceedings or arbitration can bring a resolution to the matter. Regardless of the avenue of resolution, the securities litigation lawyers at Burford Perry LLP are aggressive advocates for our clients. We’ve won substantial verdicts for our clients in the courtroom and in arbitration and negotiated significant settlements.
