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 The
bedrock of HBD’s Complex Litigation group’s practice
is our ability to try and to win large business and commercial cases.
We are a trial firm with particular expertise handling individual
and class actions involving financial and securities frauds, shareholder
derivative claims, directors' and officers' liability claims, antitrust
claims, breach of fiduciary duty claims, commercial contract disputes,
and the prosecution and defense of professional liability claims.
Our practice covers a broad range of industries including banking,
finance, securities, high technology and the Internet, energy, public
accounting, real estate development, aviation, health care, pharmaceutical,
and entertainment and media. In the securities law area, we have
extensive experience representing both plaintiffs and defendants
in cases involving alleged violations of the Securities Exchange
Act of 1934, and under state "blue-sky" securities laws,
as well as tender offer and takeover litigation and related matters.
We also have extensive experience representing individuals and companies
involved in investigations conducted by the Securities and Exchange
Commission, the Justice Department, the California Department of
Corporations, and the California Attorney General's Office.
We approach every case expecting a trial. From the very beginning
of a case we employ a collaborative process of thesis development
involving our lawyers, forensic accountants, and financial analysts.
This allows us to penetrate complex interrelated business and legal
issues and to develop a winning thesis that will resonate in an
effective discovery strategy on through trial or other resolution.
HBD’s Complex Litigation Group has achieved remarkable results.
In the last four years alone, HBD's Complex Litigation group collected
over $1 billion for its clients. The following is a description
of a few of the numerous matters in which HBD has achieved significant
recovery:
- Rabobank v. Royal Bank of Canada.
HBD prosecuted fraud and other claims on behalf of Rabobank against
Royal Bank of Canada (“RBC”) arising from RBC’s
and its employees’ involvement in questionable transactions
with Enron Corporation and SPEs sponsored by Enron and Enron employees.
This matter was settled in February 2004 on confidential terms.
- OCM et. al. v. CIBC et al. - In September
2003, HBD achieved a $52 million jury verdict against CIBC World
Markets on behalf of three investment fund clients who had invested
in section 144a high yield notes issued by Renaissance Cosmetics.
CIBC, the initial purchaser and primary market maker for the notes,
had played a pivotal role in the rapid growth of Renaissance,
but that growth was fueled by accounting and management fraud
at Renaissance. The jury found in favor of the investment funds
and against CIBC on common law and securities claims arising from
the demise of Renaissance. Previously HBD had obtained substantial
settlements from Deloitte & Touche and certain Renaissance
insiders, but the amounts of those settlements are confidential.
- Sempra Energy Resources v. California Department
of Water Resources. HBD represented Sempra Energy
Resources ("Sempra") in pursuing a claim for declaratory
relief and in defending claims of fraud and breach of contract
against the Department of Water Resources in connection with Sempra's
ten-year energy contract. The Department sought to void the contract,
which it valued at $6.6 billion, and as well as damages. In May
2003, Sempra won summary judgment on all causes of action, and
thereafter the San Diego Superior Court entered judgment in Sempra's
favor.
- Occidental Energy Ventures Corp., et al. v. Sempra
Energy Resources et al. HBD successfully defended
Sempra against claims by Occidental that Sempra breached duties
related to the joint development of a power plant. Occidental
sought more than $100 million in actual damages. In August 2003,
an AAA arbitration was held, and, in September 2003, a final award
was issued finding in favor of Sempra on all claims.
- GATX/Airlog Co. v. Evergreen International.
HBD tried and won a unanimous jury verdict for fraud and breach
of contract on behalf of Evergreen International Airlines, an
international airfreight company, in connection with three Boeing
747 passenger planes that were defectively converted to cargo
configuration by GATX Airlog Co., a subsidiary of GATX Corp. The
dispute involved damages to Evergreen exceeding $150 million.
Following the verdict HBD settled the case on confidential terms
with a substantial recovery to the client.
- U.S. ex rel. John Schilling v. Columbia/HCA Inc.,
and U.S. ex rel. James F. Alderson v. Columbia/HCA Inc.
HBD was co-counsel for whistleblowers in lawsuits brought under
the False Claims Act against HCA Inc., the nation’s largest
for-profit healthcare provider. In 2002, as a result of the efforts
of HBD, along with a team of five other top law firms assembled
to help the United States pursue the case, HCA agreed to pay a
total of $881 million to the federal government to settle Medicare
fraud charges.
- Evergreen International Airlines, Inc. v. Asiana
Airlines. In February 2003, HBD won a $16.6 million
unanimous jury verdict for breach of contract against Asiana Airlines.
- Farallon Capital Partners v. Gleacher & Co.,
Inc., et al. HBD represented Farallon Capital Partners
and Oaktree Capital Management in prosecuting fraud claims relating
to our clients’ purchase of more than $30 million in bonds
backed by a steel company in Thailand. HBD settled the case on
confidential terms with a substantial recovery to the client.
- Maxtor Corp. v. Stormedia, Inc. HBD
represented StorMedia in prosecuting fraud and contract claims
against Maxtor Corporation and Hyundai Electronics Industries,
Inc. in connection with their breach of a long-term supply contract.
The matter was settled for $9,700,000.
- Reddam v. GMAC Mortgage Corp. HBD
represented Paul Reddam in an action to recover amounts GMAC Corporation
had contracted to pay him when it purchased Ditech Funding Corp.,
a company he had founded. The matter was settled on confidential
terms with a substantial recovery to the client.
- QuadraCom, Inc. v. America Online.
HBD represented QuadraCom, Inc. in prosecuting trade secret misappropriation
and breach of contract claims against AOL. The matter was settled
on confidential terms.
- Community West Bancshares, et al. v. Deloitte &
Touche LLP. HBD represented Community West Bancshares,
Inc. and Goleta National Bank in prosecuting professional negligence
claims against Deloitte & Touche. The matter was settled on
confidential terms.
Although HBD was formed in 1995, several principals of the Complex
Litigation Group have practiced together for over fifteen years.
The following is a list of some litigation matters in which the
Complex Litigation Group and its professionals have been involved.
- Abzug v. Kerkorian. Involved allegations
of fraud and breach of fiduciary duty, and that Kerkorian wrongfully
acquired United Artists from MGM/UA at a bargain price as a result
of fraudulently undervaluing certain film assets that were repurchased.
Principals of HBD recovered $35 million on behalf of a class of
shareholders after approximately four weeks of jury trial.
- Coöperatieve Centrale Raiffeisen-Boerenleenbank
B.A. (“Rabobank”) v. Royal Bank of Canada.
HBD represented Rabobank in prosecuting fraudulent inducement
claims against RBC relating to a transaction whereby Rabobank
assumed more than one half-billion dollars in credit risk related
to an Enron-related special purpose vehicle, which transaction
became subject to the Bankruptcy Court as a result of Enron's
bankruptcy filing. In addition to prosecuting claims in the United
States, HBD assisted its client with respect to the defense of
a subsequent action filed in England. The matter was successfully
settled on confidential terms.
- Glen Ivy Litigation. HBD was retained
by Chemical Bank, Barclay's Bank PLC, Financial Security Assurance
Inc., Marine Midland Bank, and the Bankruptcy Trustee for Glen
Ivy Resorts, Inc., at one time one of the largest resort timeshare
marketers in the country, to prosecute claims on their behalf
against Glen Ivy's former auditors, officers, directors and title
and escrow companies and obtained a recovery in excess of $34
million.
- Heckmann v. Ahmanson. The Disney
Case, reported at 168 Cal. App. 3d 119, 214 Cal. Rptr. 177 (1985).
This decision is one of the leading cases in the country defining
fiduciary duties of directors in the context of a tender offer.
It is the only "greenmail" recovery of which we are
aware. Principals of HBD acted as lead counsel in all phases of
the case. The case settled after approximately four weeks of a
jury trial for more than $80 million.
- IBEW v. Bank of America. HBD represented
Southern California IBEW-NECA Pension and Welfare Plans in pursuing
claims involving inappropriate investments on behalf of the Plans.
The matter was settled on confidential terms with a substantial
recovery to the client without litigation.
- In re American Continental/Lincoln Savings.
Principals of HBD represented the California Department of Corporations,
the Commissioner of Corporations, and her staff involving allegations
that the Department of Corporations improperly granted a permit
to American Continental to sell subordinated debentures at Lincoln
Savings offices. The case was dismissed against the Department
of Corporations. Dismissed in favor of HBD’s clients.
- In re Arizona Diary Products Litigation.
Principals of HBD represented the State of Arizona in what Attorney
General Corbin described as the largest recovery in the history
of the State. Combined settlements exceeded $15 million, and the
recovery by the State was approximately equal to 100% of estimated
damages. Case settled the week before trial following completion
of all pretrial proceedings.
- In re Bergen Brunswig Corp. Securities Litigation;
In re Bergen Capital Trust I Securities Litigation; In re Bergen
Brunswig Shareholder Derivative Litigation. HBD
successfully defended Bergen Brunswig, a Fortune 200 company,
and its officers and directors in multiple federal national class
action securities fraud lawsuits and shareholder derivative action.
We succeeded in resolving claims seeking in excess of $1 billion
in damages with minimal contribution from our client.
- In re Pinnacle West Securities Litigation.
Principals of HBD represented shareholders of Pinnacle in this
case involving securities fraud and misrepresentation which was
successfully resolved in favor of the shareholders for $35 million.
- Kline Hawkes et. al. v. Idealab et al.-
HBD successfully defended the inside officers and directors of
Idealab, a leading creator and operator of technology businesses
such as Overture Services, CarsDirect.com, eToys, and NetZero,
in litigation brought by a group of shareholders alleging breaches
of fiduciary duty and other claims following the burst of the
Internet bubble in 2000. The litigation, including derivative
claims, was dismissed by the Los Angeles County Complex Court
in June 2003, following plaintiffs’ third unsuccessful attempt
to amend its complaint. Following appeal of the dismissal, in
April 2004 the matter was favorably resolved.
- Los Angeles MTA v. Lazard Freres.
HBD pursued claims on behalf of the Los Angeles Metropolitan Transportation
Authority against Lazard Freres, a Wall Street investment bank,
for breach of fiduciary duty and violations of California’s
False Claims Act arising out of alleged overcharges by Lazard
Freres in a series of advance refundings of municipal bond debt
structured by Lazard Freres. The recovery, by way of negotiated
settlement, exceeded $15 million, which included a full recovery
of all claimed overcharges, all legal fees and all litigation
expenses incurred by our clients.
- MaguirePartners. Since 1997, HBD
has served as the primary litigation counsel for Maguire Partners,
a premiere commercial real estate development firm. HBD’s
role has been instrumental in securing and maintaining valuable
rights for Maguire with respect to a 1000 acre complex development
project. HBD has represented Maguire in four separate arbitrations,
the first resulted in a favorable settlement, the second, December
2001, and third, October 2002, resulted in an award in Maguire’s
favor on all issues, and the fourth, November 2002, resulted in
a determination in favor of Maguire permitting a further action
for damages.
- Muller v. Sambo’s. Principals
of HBD prosecuted these cases as lead counsel. The cases involved
more than 300 claimants (and individual counter claims) against
Sambo's and First Interstate Bank. More than $27 million was recovered,
and the case was one of the precipitating factors behind the Sambo's
bankruptcy case. The cases settled after it had been called to
trial, on the day of the Sambo's Chapter 11 filing.
- Northview v. Boesky. HBD lawyers
represented the Creditor’s Committee for the estate in bankruptcy
of Northview Corporation in an action to recover corporate assets
unlawfully distributed to former officers, directors and shareholders
of Northview Corporation in a complex tender offer and related
merger transaction and in claims against Northview's former counsel
and investment banker for their role in the transaction and obtained
a recovery in excess of $35 million.
- Orange County. HBD represented Orange
County as lead litigation counsel in lawsuits filed against Merrill
Lynch, numerous other broker dealers, structured note issuers,
and professionals retained by the County prior to the bankruptcy,
including attorneys, accountants, and financial advisors. Settlements
of these cases exceeded $871 million. This included the largest
litigated recovery ever recorded against a law firm, one of the
largest ever against Wall Street, one of the largest ever against
a major accounting firm, and collectively one of the largest recoveries
for a single series of interrelated suits.
- Tamkin v. Avon. Principals of HBD
represented the plaintiff. A four week trial resulted in a $20
million AAA arbitration award in favor of HBD’s client.
- Tolliver v. Southern California Gas Co.
Principals of HBD represented individual plaintiffs in a four
week jury trial that resulted in a $235 million judgment for plaintiffs,
who alleged fraud and misrepresentation in the selling of investment
contracts to a group of elderly investors.
- Van Vranken v. ARCO. HBD lawyers
represented the plaintiffs in a jury trial relating to ARCO's
violations of federal price control regulations that resulted
in a $78 million judgment for plaintiffs.
Business Reorganization
and Bankruptcy
Patent and Technology
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