News - 2013
Institutional Investors Urge the SEC and Congress to Keep the Courthouse Doors Open to Shareholders Who Have Been Damaged by Securities Fraud
Institutional investors collectively managing assets that exceed $4.9 trillion, have called on the U.S. Securities and Exchange Commission (SEC) and the U.S. Congress to oppose forced arbitration in shareholder disputes. Over 200 major domestic and foreign institutional investors, who safeguard the retirement savings of millions, signed letters detailing how forced arbitration eliminates the rights of shareholders to hold corporations legally accountable for fraud and abuse. Please contact Joseph White or Maya Saxena for additional information on joining the effort to oppose this significant challenge to shareholders' rights.
Click Here to view the US Institutional Investor Letter to Congress
Saxena White is Appointed Lead Counsel in Maxwell Technologies, Inc.
On March 13, 2013, a complaint was filed in the United States District Court for the Southern District of California against Maxwell Technologies, Inc. (“Maxwell” or the “Company”) and certain of the Company’s senior executives (the “Individual Defendants” and, together with the Company, “Defendants”) for violations of the federal securities laws. The action alleged that Defendants misled investors by, among other things, (i) overstating Maxwell’s revenues and earnings in 2011 and 2012; (ii) reporting revenues prior to the time the sales price was fixed and/or collection was reasonably assured; and (iii) having internal accounting controls that were deficient and which permitted the premature recognition of revenue.
On May 13, 2013, Saxena White P.A. filed a motion on behalf of City of Clearwater Employees’ Pension Plan (“Clearwater”) requesting that the Court appoint Clearwater as the Lead Plaintiff of the consolidated action and appoint Saxena White as Lead Counsel for the Class. On October 24, 2013, the Honorable Roger T. Benitez issued an Order consolidating the related actions, appointing Clearwater as Lead Plaintiff and appointing Saxena White as Lead Counsel. In the Order, Judge Benitez noted, among other things, that “Saxena White has extensive experience litigating securities class actions, and has successfully prosecuted numerous securities fraud class actions on behalf of investors.” Plaintiff is currently in the process of preparing its Consolidated Amended Class Action Complaint, which will be filed according to the terms of a briefing schedule to be approved by Judge Benitez.
Saxena White Settles Matrixx Initiatives, Inc.
Saxena White filed suit on behalf of shareholders of Matrixx Initiatives, Inc. ("Matrixx") in relation to Matrixx's alleged violations of FDA regulations involving Zicam Cold Remedy products. The Honorable Roslyn O. Silver denied Defendant's Motion to Dismiss on September 26, 2011. Plaintiff's Motion to Certify Class, Appoint Lead Plaintiff as Class Representative, and Appoint Class Counsel was granted on July 31, 2012.
On October 19, 2012, the parties participated in an all-day mediation session that culminated in an agreement pursuant to which Defendants will pay $4.5 million to settle the action. On January 31, 2013, Plaintiff filed a motion for preliminary approval of the settlement, which the Court granted on may 1, 2013. On September 5, 2013, the Court held a fairness hearing to evaluate the parties' application for final approval of the settlement. On September 6, 2013, the Court entered a Final Judgment and Order, finding that the settlement was fair, adequate and reasonable and grating final approval of the settlement.
Clear Channel Outdoor Holdings, Inc. Derivative Litigation Settlement Notice
Saxena White prosecuted a derivative action on behalf of nominal defendant Clear Channel Outdoor Holdings against certain of the Company’s senior executives and directors. The derivative action brought forth claims that Outdoor’s senior executives and directors breached their fiduciary duties by approving a $1 billion unsecured loan on highly unfavorable terms to the Company’s parent corporation, Clear Channel Communications, Inc. After several months of working with a Special Litigation Committee of the Company’s Board, the parties agreed to a resolution of the action that provided meaningful benefits to the Company and its shareholders, including an agreement that would provide a dividend to shareholders in the amount of $200 million, as well as additional corporate governance reforms.
Click Here to view the Settlement Notice
Saxena White Settles TPC Group, Inc.
As counsel for Plaintiffs, Saxena White filed suit on behalf of the shareholders of TPC Group, Inc., in relation to the proposed acquisition of TPC by private equity firms First Reserve Corp. and SK Capital Partners. The suit alleged that chemical company TPC’s board of directors breached their fiduciary duties by agreeing to a sale of the company for an inadequate price and by failing to disclose to shareholders material information related to the sale of the company. After the Plaintiffs conducted extensive discovery and filed a motion for preliminary injunction, the Defendants agreed to include substantial supplementary disclosures in the proxy, which provided shareholders with additional information regarding TPC’s financial advisor’s analysis of the deal and the sale process leading to the proposed transaction.
Additionally, because of the litigation efforts of Plaintiffs in arguing that the original $40 per share offer price submitted by the Buyers was inadequate, TPC was forced to negotiate a better deal with the Buyers. TPC eventually negotiated an increased price of $45 per share, which resulted in TPC’s shareholders receiving approximately $79 million more in cash for their TPC shares than under the original offer.
Saxena White Settles Aracruz Celulose S.A.
Saxena White P.A. filed an original action against Aracruz and certain of its senior executives for securities fraud on November 26, 2008. The complaint alleges that instead of entering into currency derivative contracts to hedge its U.S. dollar exposure, Aracruz secretly entered into derivatives that were far larger and riskier than necessary, thereby speculating on the currency exchange rate. After hotly contested litigation and months of back and forth negotiations, Saxena White is pleased to announce that the Court preliminarily approved a $37.5 million settlement on March 14, 2013. The Court will hold a hearing on July 1, 2013 to determine whether to give final approval to the Settlement.
Saxena White Settles Bank of America Corporation
On February 9, 2009, Saxena White P.A. filed a shareholder derivative action on behalf of nominal Defendant Bank of America Corporation ("BAC") against Defendants for their wrongful course of conduct allegedly arising from the Company's acquisition of Merrill Lynch & Co. ("Merrill Lynch"). The complaint alleged that, during the course of consummating the acquisition of Merrill Lynch, the Individual Defendants breached their fiduciary duties and violated federal and state law by failing to protect the interests of the Company. Prior to the Bank of America shareholder vote on December 5, 2008 to approve the Acquisition, the Individual Defendants knew, or were severely reckless in not knowing, that Merrill Lynch had incurred billions of dollars in losses beyond what was publicly disclosed at the time that the Company entered into the Merger Agreement on September 15, 2008. On January 11, 2013, after over three years of hotly contested litigation, the Court approved the Settlement, comprised of $62.5 million and certain corporate governance reforms.
Saxena White Supports the Community
Saxena White is proud to support our community. On February 20, 2013 Saxena White was recognized as a Bronze sponsor for the 23rd Annual Martin Luther King, Jr. Celebration Scholarship Program. The program awards scholarships to high school seniors in various amounts based primarily on financial need. Through the scholarship program's efforts, over 180 high school seniors have been able to apply the scholarship money towards tuition costs at any institution of higher learning.
The purpose of the scholarship program is “to provide funds to needy, local students who, through their words and actions, embody the spirit of Dr. King’s teachings". While there is preference given to students with financial need, consideration is also given to students who demonstrate quality community service. Examples of past student initiatives include tutoring, feeding the homeless, assisting with blood drives as well as holiday activities.