Securities Litigation

This case was a securities fraud case brought by plaintiffs against international investment bank and securities firm UBS Warburg. Plaintiffs merged their company with another company and accepted $43 million worth of the other company’s shares of stock as the sale price for the acquisition. After the transaction closed, various misrepresentations in the acquiring company’s financial statements came to light that caused the stock to plummet in value and the company to eventually be de-listed. UBS was the underwriter on the acquiring company’s IPO that had occurred shortly before it acquired the plaintiffs’ company. UBS filed a summary judgment motion arguing that it did not recklessly make any misrepresentations in the prospectus and other offering materials for the IPO and that it did not render substantial assistance to the acquiring company in carrying out its fraud. This brief was filed by Heygood, Orr & Pearson on behalf of their client.

This case was a securities fraud case brought by plaintiffs against international accounting firm PriceWaterhouseCoopers (“PWC”). Plaintiffs relied upon financial statements audited by PWC in deciding to merge their company with another company and accept $43 million worth of the other company’s shares of stock as the sale price for the acquisition. After the transaction closed, various misrepresentations in the acquiring company’s financial statements came to light that caused the stick to plummet in value and the company to eventually be de-listed. PWC filed a summary judgment motion arguing that it owed no duty to third parties such as plaintiffs because they were not with the “limited group” of persons entitled to rely on PWC’s work. Defendants also argued that any reliance by plaintiffs on the acquiring company’s financial statements was not reasonable. This brief was filed by Heygood, Orr & Pearson on behalf of their client.