Securities and Insurance Fraud

The last few years have seen the disclosure of mammoth instances of securities fraud as well-known companies restate earnings and other questionable practices come to light. Smaller companies and individuals also sometimes play fast and loose with their duties to investors and partners under the securities laws.

Watts Law Firm has represented plaintiffs in several class actions and individual cases involving securities fraud. Representative cases include Harry Wilk et al. v. Kennedy Capital. In Wilk, investment advisors made fraudulent representations to investors in several states and foreign countries to induce them to support the takeover of a publicly-traded company. Following the acquisition, the target promptly declared bankruptcy. We resolved the case for a confidential sum favorable to our clients.

Another example is Russell Grigsby v. ProTrader Group Management LLC*. In Grigsby, our client's partners forced him out of the securities trading business he helped found by acquiring his stock at a price grossly deflated by the material nondisclosure of negotiations to sell the company to a much larger firm for $150 million dollars. The sale ultimately occurred and, following weeks of arbitration, a panel of arbitrators awarded Grigsby $43 million for his securities fraud and other claims. *Grigsby: Attorney fees: $12,274,249.79; Expenses: $977,466.04

In the insurance fraud arena, we prosecuted James and Regina Stephenson's claim against Lloyds for its bad faith refusal to cover the loss of our clients' home, which was destroyed by fire. In the end, our clients received well more than double the full, substantial policy amount. Similarly, in Williams v. Texas Insurance Agency*, after an insurance agent failed to secure appropriate insurance coverage for our client, we brought suit and recovered $3.5 million. *Williams: Attorney Fees: $1,200,000; Expenses: $77,674.91.

If you or a client has been victimized by securities or insurance fraud and want an experienced, committed partner, call Watts Law Firm.