Rolnick Kramer Sadighi LLP

RKS is hiring junior to mid level associates in its NYC and NJ offices. Apply here.

RKS defeated a motion to dismiss, in relevant part, in a fraud, breach of fiduciary duty and conversion case (among other claims) against MCML Ltd. (f/k/a ED&F). The claims of RKS's client - a retired professor who lost his retirement savings in the Cum-Ex scandal - will go forward. RKS looks forward to getting its client his day in court.

RKS defeated a motion to dismiss, in relevant part, in a breach of fiduciary duty case in the Eastern District of Virginia. Chief Judge Mark Davis held that RKS, on behalf of the plaintiff class, sufficiently pled direct claims for breach of fiduciary duty and aiding and abetting breach of fiduciary duty against board members of Wheeler Investment Trust and a group of investment funds. RKS successfully argued issues of personal jurisdiction and that allegations of dilution to common stock satisfied the standing requirements for the class to sustain a direct action. Class members are one step closer to trial and potential recovery for their losses. Read the opinion here:

RKS secured a major victory for its clients with securities fraud claims in the PG&E bankruptcy, defeating PG&E’s legal sufficiency objection. In the bankruptcy RKS represents hundreds of claims and scores of asset managers and investors. The RKS Claimants are by far the largest set of securities fraud claimants seeking recovery from PG&E. Their claims will proceed to discovery and adjudications on the merits. The claims arise from PG&E’s alleged misstatements as to the adequacy and legal compliance of its maintenance and fire safety practices leading up to the devastating North Bay Fires of 2017 and Camp Fire of 2018, which were caused by PG&E. As RKS alleged in the RKS amended proof of claim, PG&E repeatedly assured investors it complied with laws and regulations regarding maintenance of its infrastructure and fire safety measures while, in reality, it systemically ignored those responsibilities and deceived its regulators to avoid detection of its pervasive neglect. When the truth was revealed, investors suffered billions of dollars in losses. The decision of the United States Bankruptcy Court for the District of Northern California did not disallow a single claim asserted by RKS’s clients, and will allow each of the claims to proceed to a final determination.

Rolnick Kramer Sadighi LLP partner Steven Hecht discusses how to value public stock held by an appraisal target.  

Securities fraud claims against Alta Mesa Resources, its SPAC sponsor Riverstone, and other defendants, are heading to trial after RKS defeated summary judgment motions in two direct action ("opt out") lawsuits. Alta Mesa was a relatively early SPAC; the company de-SPAC'd in early 2018 and went bankrupt 18 months later. Our investor clients suffered significant losses and brought suit to recover as a result of alleged misconduct. They are one (big) step closer to getting their day in court. See our bulletin for more.

RKS achieved a significant victory on behalf of an investor class, including co-lead plaintiff Discovery Capital Management, defeating a motion to dismiss a securities fraud class action against Enovix Corporation and its highest-ranking corporate officers. RKS is co-lead counsel with The Rosen Law Firm, P.A., pursing claims on behalf of the Class against Enovix, an early-stage battery company that purports to manufacture a new type of lithium-ion battery. The action alleges Enovix and its management made false and misleading statements regarding its manufacturing equipment and thereby violated the federal securities laws. The court denied in relevant part a motion by the defendants to dismiss the claims, handing the shareholders a significant victory and allowing the claims to proceed towards trial.

RKS wishes the Securities Exchange Act of 1934 a happy 90th birthday today. Even at 90, the Exchange Act forms the bedrock of investor protection in the US capital markets. Signed into law by President Franklin D. Roosevelt on June 6th 1934, it became (generally) effective July 1. While Congress has made a few significant amendments to the original act, the vast majority of the investor protection system remains as written and enacted in 1934, a testament to thoughtful draftsmanship and compromise.

RKS Summer Law Clerk Hunter Thomas discusses the implications of SEC record-keeping crackdowns on investors in our latest blog post. Read it here:

RKS Summer Law Clerk Cody (Jinmeng) Huyan writes about considerations for non-US investors facing expropriation by government action. See the blog post here: