Attorneys

Securities and Derivative Litigation

Stock Drop Class Actions

• Obtained dismissal of SEC Rule 10b-5 and Section 11 class actions at motion to dismiss stage filed against numerous companies and their officers and directors, including Block- buster, a hospice care network, a mobile phone service provider and a Big Four accounting firm; also obtained dismissal of related ERISA class actions, state court actions and derivative actions;
• Defended an Oklahoma oil and gas company and its officers and directors in Section 11 class action and related claims filed by creditor trustee; case settled on satisfactory terms;
• Obtained dismissal of 10b-5 and Section 11 claims against Blockbuster and certain of its officers and directors arising from Blockbuster’s split-off from Viacom, Inc.; also obtained dismissal of related state law claims asserted in the class action suit filed in the Delaware Chancery Court and related ERISA stock drop class action;
• Obtained dismissal of 10b-5 claims against hospice care provider after market capitalization dropped $300 million (as well as dismissal of companion state and federal court derivative actions);
• Obtained dismissal of 10b-5 and Section 11 claims against mobile phone service provider after drop in subscribers and revenues (as well as dismissal of companion state and federal court derivative actions);
• Obtained dismissal of 10b-5 claims against Big Four accounting firm arising from its client’s restatement of earnings;
• Obtained dismissal of 10b-5 claims against Blockbuster after drop in revenues and loss of $2 billion in market capitalization (as well as dismissal of companion state court derivative action);
• Represented Heelys, Inc. in a securities class action, derivative actions and individual shareholder lawsuits arising from drop in stock price after IPO; cases were settled to the client’s satisfaction;
• Defeated class certification in securities fraud action asserted against a Big Four accounting firm based on the plaintiffs’ inability to demonstrate a fraud-on-the-market classwide presumption of reliance;

Merger Challenge Litigation

• Represented a subsea pipeline company and its officers and directors in Texas and Louisiana state and federal courts challenging the company’s acquisition for $1 billion; case settled on satisfactory terms that allowed the merger to close;

SEC Enforcement Actions

• Represented numerous individuals in various insider trading and accounting fraud SEC investigations, many of which were terminated with no action taken against the clients;

Shareholder Disputes

• Defended private equity fund and related entities in shareholder oppression lawsuit related to acquisition and management of bank; after significant pre-trial motion practice and prior to commencement of depositions, plaintiffs voluntarily dismissed all claims;
• Defended individual investment professional against RICO, fraud, and breach of fiduciary duty claims concerning real estate investment in two-week jury trial; jury ruled in favor of client on RICO and fiduciary duty claims and apportioned client only 1% liability on remaining claim;
• Obtained significant settlement for two individuals who were wrongfully denied partnership interest in company they co-founded to develop LNG export terminals;

Energy Litigation and Arbitration

• Represented power trading company in dispute over terms of trade confirm in state court litigation; case settled satisfactorily to client;
• Represented midstream company in joint venture dispute regarding construction and operation of cogeneration facility; case settled satisfactorily to client;
• Obtained jury verdict for offshore drilling company in lawsuit to recover unpaid joint interest billings; verdict upheld on appeal;
• On behalf of a Canadian crude oil trading company, prevailed in a New York arbitration to recover payments due for two cargoes of Canadian mixed sweet crude oil that the client sold to another trading company; panel ruled that cargoes met contractual specifications and awarded damages and attorneys’ fees of $3.8 million to the client;
• Represented an energy trading and marketing firm in a price re-opener dispute under a long-term gas supply contract with an electrical cooperative in an American Arbitration Association proceeding; shortly before the hearing, the dispute was settled with a favorable price adjustment for the client;
• Represented a chemical pipeline manufacturer in bankruptcy proceedings in which the debtor/lessor sought to recharacterize a pipeline lease agreement as an unsecured sale of pipeline; case settled favorably for the client;
• On behalf of private equity fund portfolio company, prevailed in a Canadian arbitration to recover the disputed amount of purchase price paid for natural gas storage facilities; arbitrator found that the gas remaining in the facility was cushion gas (not working gas) for which the client should have been required to pay an additional purchase price amount and awarded the client $17.7 million; respondent’s appeal of the award was denied by the Court of Queen’s Bench of Alberta; and
• In a Canadian arbitration, obtained a liability finding in favor of a gas and power trading and marketing company against a major oil producer for wrongful termination of a gas supply contract,
• With damages exceeding $80 million to be determined in a second phase of the bifurcated arbitration; the case settled favorably after a hearing on damages.

Other Commercial Litigation

• Patterson v. Five Point Capital Midstream Funds I and I, L.P., 2020 WL 7213348 (Tex. App. – Houston [1st Dist.] Dec. 8, 2020).
• Boltex Manufacturing Company, L.P. v. Galperti, Inc., 2019 WL 2569922 (S.D. Tex. June 21, 2019), aff’d 2020 WL 5506404 (5th Cir. Sept. 11, 2020).
• Vulcan Golf, LLC v. Google, Inc., et al., 254 F.R.D. 521 (N.D. Ill. 2008), 552 F. Supp.2d 752 (N.D. Ill. 2008), and 2008 WL 2959951, (N.D. Ill. July 31, 2008).
• Thompson v. Jiffy Lube International, Inc., 250 F.R.D 607 (D. Kan. 2008) and 505 F. Supp.2d 907 (D. Kan. 2007).
• Stephani Bayhylle v. Jiffy Lube International, Inc., 146 P.3d 856 (Okla. App. 2006).
• Krispy Kreme Doughnuts Corp. v. Lone Star Doughnuts Ltd., 2006 WL 561520 (Tex. App. – Houston [14th Dist.] 2006).
• Cerberus Partners, L. P. v. Gadsby & Hannah, 728 A.2d 1057 (R.I. 1999).
• Cerberus Partners, L. P. v. Gadsby & Hannah, 976 F. Supp. 119 (D.R.I. 1997).