The recent turmoil in the credit markets and staggering financial losses have resulted as much from the use of complex financial instruments as from the recklessness of mortgage lenders. SLG’s experience—litigating cases involving derivatives, CDOs and private equity—reflects its broad expertise and ability to assist investors affected by these extraordinary events.

SLG clients in the U.S. and overseas include family partnerships and trusts, company founders, hedge funds, and institutions seeking to recover investment losses due to negligence, mismanagement or fraud. SLG’s 2006 arbitration award of $5.8 million against Deutsche Bank is thought to be the first reported arbitration decision involving recovery for unsuitable investments in collateralized debt obligations—products that became ubiquitous in the repackaging and sale of subprime mortgages.

While SLG aggressively pursues mediation and other forms of alternative dispute resolution, it is equally comfortable with class actions, state and federal litigation, and FINRA (formerly NASD) arbitrations.

SLG also represents institutions and entrepreneurs in responding to SEC inquiries, conducting internal investigations, and addressing executive compensation issues.

We are regularly engaged in the investigation and evaluation of securities issues and securities products.  See, e.g., our Madoff Ponzi Scheme FAQ.

Representative Cases:

Representation of company founders and investors against major brokerage firm for failure to hedge or enter into derivatives transactions. $8.5 million settlement (NASD).

Representation of hedge fund CEO in connection with SEC investigation of insider trading.

Eshelman v. OrthoClear Holdings, Inc. et al. (U.S. District Court, pending). Lead counsel in securities fraud litigation against private company manufacturing orthodontic appliances.

Representation of public company founders in coordinated actions against financial advisor arising from failure to diversify or hedge concentrated position in Rule 144 stock. $15 million settlement (Superior Court).