Key Successes

Here are Noteworthy cases from the files of Zwerling Schachter:

In re Lehman Brothers Equity/Debt Securities Litigation, No. 08 Civ. 5523(LAK) (S.D.N.Y.), Zwerling Schachter, as co-counsel, recovered $120 million for a certified class of investors in 84 Lehman-issued structured products sold by UBS Financial Services, Inc. This settlement is among the highest securities class action settlements ever obtained by non-institutional plaintiffs since the enactment of the Private Litigation Securities Reform Act in 1995. The lawsuit alleged that the underwriter and seller of the structured products was liable under Sections 11 and 12(a)(2) of the Securities Act of 1933 for materially false and misleading statements and omissions in the offering documents about Lehman’s financial condition and the “principal protection” feature associated with many of the notes.

Zwerling Schachter is presently acting as co-lead counsel on behalf of consumers and third-party payors in a certified class action against pharmaceutical companies in California state court. The action alleges claims involving "reverse payments" or "pay-for-delay."  Cipro Cases I and II, J.C.C.P. Nos. 4154 and 4220 (Cal. Super. Ct. San Diego County). Zwerling Schachter has obtained a partial settlement of $74 million with the brand manufacturer. The case is continuing against the remaining defendants and is currently pending before the California Supreme Court.

Billitteri v. Securities America, Inc., et al, No. 3:09-cv-01568-F (N.D. Tex.) and In re: Medical Capital Securities Litigation, No. ML10-2145 DOC (RNBx) (C.D. Cal.) - Zwerling Schachter was co-lead counsel in two related cases where unique issues were raised regarding whether broker-dealer sellers of securities could be held liable for misrepresentations made in offering documents. As co-lead counsel in actions against various broker defendants that sold stock or partnership interests in Provident entities or Shale Royalties entities, and/or notes issued by a special purpose corporation affiliated with Medical Capital Holdings, Inc., Zwerling Schachter obtained a settlement of $80 million against defendants Securities America, Inc., Securities America Financial Corporation and Ameriprise Financial, Inc. The firm obtained additional settlements regarding Provident Energy securities of $6.92 million.

Zwerling Schachter was a member of the Steering Committee for plaintiffs in a class action lawsuit alleging that brokers and insurers engaged in an insurance brokerage scheme involving the receipt of undisclosed payments or kickbacks from insurance carriers, steering insurance policyholders to carriers paying the most in “contingent commissions,” and rigging bids for insurance policies to the detriment of insurance policyholders. Settlements totaling over $300 million were obtained.

In re BP Prudhoe Bay Royalty Trust Sec. Litig., No. 06-1505 MJP (W.D. Wash.) -- Zwerling Schachter was sole Lead Counsel in the certified class action in which BP Prudhoe Bay Royalty Trust Unit holders alleged violations of the Securities Exchange Act of 1934 in connection with statements made by BP p.l.c. following an oil spill at its oil field located in Prudhoe Bay, Alaska.  Zwerling Schachter achieved a settlement of $43.25 million. Class members who filed claims in the action received 100% of their recognized losses, as well as statutory interest.

Zwerling Schachter was one of three class counsel in Rodriguez v. West Publishing Corporation, C.D. Cal., Case No. 05-3222, where plaintiffs alleged that West Corporation (as owner of BAR/BRI) violated the antitrust laws by agreeing with Kaplan, Inc. to prevent competition in the market for full-service bar review courses, and, as a result, consumers paid more for BAR/BRI bar review courses than they should have. A $49 million settlement of antitrust claims was approved by the Court and affirmed by the Ninth Circuit Court of Appeals on behalf of a class of law graduates enrolled in the BAR/BRI bar review courses.

In re Old Banc One Shareholders Securities Litigation, N.D. Ill., Civ. No. 00 C Z100 (WRA) -- a securities class action where Zwerling Schachter achieved a settlement of $28 million in connection with the merger between Banc One Corporation and First Chicago NBD. The Class alleged that the Prospectus issued in connection with the merger contained materially false and misleading statements, including financial statements relating to Banc One's credit card subsidiary, First USA Bank, N.A.

In re First Bancorp Securities Litigation, D.P.R., 3:05-CV-02148-PG, Zwerling Schachter was co-lead counsel in this securities fraud class action involving sham mortgage sales transactions between Puerto Rico banks. Zwerling Schachter achieved a $74.25 million settlement in less than eighteen months of litigation.

Hayman v. PricewaterhouseCoopers, LLP, No. 1:01-cv-1078 (KMO) (N.D. Ohio) - a securities fraud class action brought on behalf of investors in Telxon Corp. securities against the company’s auditors for allegedly issuing false opinions on the company’s financial statements. As sole lead counsel, Zwerling Schachter obtained a recommendation for a default judgment against PricewaterhouseCoopers, LLP and subsequently settled the action for $27.9 million.

In re Telxon Corp. Securities Litigation, N.D. Ohio, 5:98-cv-2876, a securities fraud class action where Zwerling Schachter, as sole counsel, obtained a settlement of $40 million on behalf of investors. Class members in the Hayman and Telxon actions received over 70% of their losses in the two settlements.