Complex Litigation

HBD’s Complex Litigation Group has achieved extraordinary results, collecting over $2 billion for its clients over the last decade. The following is a description of a few of the numerous matters in which HBD has achieved significant recovery:

Enron Litigation. HBD pursued claims against a number of Enron’s relationship banks on behalf of institutional investors Aegon, Principal, AIG, PIMCO and Oaktree for nearly $1 billion in net principal losses arising out of their purchases of Enron-backed securities issued by special purpose entities in private placements, as well as Enron-related securities purchased in the open market. The cases, alleging violations of state blue sky laws and federal securities statutes, were settled on confidential terms.
Sempra Litigation. HBD represents Sempra Generation in connection with a series of challenges brought by the California Department of Water Resources to the multi-billion dollar long-term energy contract between Sempra and the Department. In two arbitrations, HBD has defeated DWR efforts to rescind the energy contract and has been successful in overcoming DWR’s request for many hundreds of millions of dollars in damages—with Sempra paying only modest damages in one case and no damages in the other case. In separate litigation, HBD obtained for Sempra Energy an arbitration award rejecting Occidental’s claim for more than $100 million in damages for Sempra’s alleged breach of a partnership agreement.
Oaktree Capital Management and Trust Company of the West. HBD represented plaintiffs in a securities fraud action against CIBC World Markets. After a four-week trial, the jury awarded $52 million in damages to HBD’s clients—the precise amount requested in HBD’s closing statement. On appeal, HBD succeeded in having the judgment affirmed. HBD also succeeded on a cross-appeal directing the Superior Court to augment the judgment with pre-judgment interest.
Cogent v. Northrop. HBD successfully prosecuted claims on behalf of Cogent Systems, a publicly-traded provider of fingerprint identification technology, against Northrop Grumman for trade secret misappropriation in connection with a $250 million fingerprint identification contract in the UK. In a particularly significant ruling, HBD obtained summary adjudication on behalf of Cogent in establishing that Northrop Grumman had breached the contract limiting its use of Cogent’s technology.
Orange County. HBD represented Orange County as lead litigation counsel in lawsuits filed against Merrill Lynch, numerous other broker dealers and professionals retained by the County prior to the bankruptcy, including attorneys, accountants, and financial advisors. Settlement recoveries in these cases exceeded $871 million. This included the largest litigation settlement 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.
Rabobank v. Royal Bank of Canada. HBD prosecuted fraud and other claims on behalf of Rabobank against Royal Bank of Canada, seeking to rescind in excess of $500 million in damages arising from transactions with Enron and Special Purpose Entities sponsored by Enron and Enron employees. This matter was settled on confidential terms.
Dr Pepper Appraisal Action. HBD successfully represented TCW and Jefferies Group in a trial of an appraisal action before the Delaware Court of Chancery. Although most other minority shareholders had accepted a tendered merger price, HBD persuaded the Court of Chancery that the per-share price should have been a 30% premium above the merger price. With prejudgment interest, HBD’s clients recovered more than $20 million more than the merger consideration they had originally been offered.
U.S. ex rel. John Schilling v. Columbia/HCA and U.S. ex rel. James F. Alderson v. Columbia/HCA. HBD was co-counsel for whistleblowers in lawsuits under the False Claims Act against HCA Inc., the nation’s largest for-profit healthcare provider. In 2002, HCA agreed to pay a total of $881 million to settle these 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 passenger planes that were defectively converted to cargo configuration by GATX. 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.
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.
Roman Catholic Archdiocese of Los Angeles. HBD acted as counsel to the Archdiocese, successfully settling over 500 separate cases alleging clergy misconduct.
Maguire Properties. HBD has served as the primary litigation counsel for Maguire Properties, a premier commercial real estate development firm. HBD’s role was instrumental in securing and maintaining valuable rights for Maguire with respect to a 1000-acre complex development project. HBD has represented Maguire in three separate actions pertaining to the development project, the first resulted in a favorable settlement, the second resulted in an award in Maguire’s favor on all issues, and the third action resulted in a confidential settlement.
Enron Power Marketing, Inc. v. AES Corp., et al. HBD represented AES Corporation, Central Illinois Light Company and Constellation New Energy, Inc. in an adversary action brought by Enron Power Marketing, Inc. (“EPMI”) for more than $40 million in termination payments EPMI claimed it was owed under two master agreements governing purchases and sales of energy. This matter was settled in 2004 on confidential terms.
Geddes v. Honeywell International, Inc. HBD represented investors swindled by a corporate employee who used his position to induce investment of millions of dollars in a non-existent project to build an entertainment complex in downtown Atlanta. HBD recovered the full amount of the funds invested in the scheme.
Irvine Meadows v. Harry Shuster, et al. HBD successfully used the little-known, and rarely applied, doctrine of quia timet to prevent destruction of Irvine Meadows Amphitheatre that was threatened as leverage in a dispute between the landowner and its lessee, Irvine Meadows’ lessor. HBD also obtained a Judgment for more than a half-million dollars incurred in responding to attempted extortion of Irvine Meadows based on the threat to destroy its property.