The Recorder Profiles BLB&G’s California Office As Securities Litigation Department of the Year
April 24, 2015
The Recorder, California’s premier legal daily, has named BLB&G’s San Diego office as the recipient of one of its 2015 “Litigation Department of the Year” Awards. The awards recognize California litigation practices that delivered standout results on their clients' most critical matters. BLB&G was one of only two firms selected to its “Securities” category.
In The Recorder profile of BLB&G, the firm was praised for “help[ing] blaze the trail for institutional investors who suffered some of the biggest losses in the financial meltdown.” The Recorder highlights three substantial recoveries achieved by BLB&G in 2014 “after years of battle against top defense firm and their elite litigators,” including: $99 million from Ernst & Young in the Lehman Brothers litigation, bringing the total recoveries in the case to $615 million; $280 million from JPMorgan Chase & Co., and $95 million from Morgan Stanley.
David Stickney, the lead prosecutor in these cases, acknowledged that in the aftermath of the crisis, “there was a sense for everybody involved that they really were dealing with something historic in terms of the size and the scale and the scope of all the litigation issues.” According to The Recorder, “it took new legal theories, heavy investment, and a measure of daring on the part of plaintiff firms” to take big banks to task for how they packaged and sold mortgage-backed securities leading up to the crisis.
In the JPMorgan case, for example, Mr. Stickney explained, “there was little precedent. No court had sustained claims under federal securities laws for purchasers of mortgage-backed securities, and no court had certified a class of this kind.” Despite this set of novel circumstances, however, JPMorgan agreed to pay $280 million to settle all claims – the third-largest subprime settlement ever achieved at the time.
The profile also highlighted another example of wading into “uncharted territory” successfully in the case against Ernst & Young, Lehman’s former auditor. The $99 million settlement, one of the largest auditor settlements ever, was achieved despite the fact that the feds decided not to press charges against the audit firm after the bank failed. Mr. Stickney credited “brilliant negotiator” Max Berger, the senior founding partner of BLB&G, as being critical in bringing about this resolution.
The Recorder editors sifted through 176 nominations looking for decisive victories at trial or on appeal, selecting 14 firms as winners in nine specialties. They considered the degree of difficulty, dollar value and importance of each matter to the client, the depth and breadth of the practice, and the use of innovative approaches.
External Link: Click here to view article (link will open in a new window)
Also of Interest
Chambers Again Ranks BLB&G Among Nation’s Top Securities Litigation Firms
The Recorder Profiles David Stickney as a “Groundbreaker” for his Success in RMBS Litigation
April 15, 2016
Chambers Ranks BLB&G Nation’s Top Securities Litigation Firm
BLB&G Named National Tier 1 Firm for Securities and M&A Litigation by Legal 500
Law360 Profiles Salvatore Graziano as a "Securities MVP"
December 6, 2016
The Recorder Names David Stickney a “Groundbreaker” for his Success in RMBS Litigation
March 7, 2016
Law360 Names Salvatore Graziano a "Securities MVP"
November 23, 2016
SCAS Again Ranks Bernstein Litowitz Among Top Securities Litigation Firms in the Nation With Over $2 Billion Recovered and Highest Average Recovery
April 20, 2017
Benchmark Again Ranks BLB&G One of the Top Firms in the Nation
Daily Journal Names David Stickney Among “Top Plaintiff Lawyers” in California
June 15, 2016