Securities Fraud & Financial Services

Consumers and investors suffer when corporations, banks, and financial institutions and/or their employees cheat. Securities fraud comes in many forms and typically involves false misrepresentations or omissions that manipulate or sway investment decisions. Some examples include omissions of material facts, unauthorized trading, churning, breach of fiduciary duty, fee schemes, and Ponzi schemes. Carella Byrne vigorously investigates claims of securities fraud or financial impropriety and litigates claims on behalf of our clients, such as:

Curran v. Freshpet, No. 16-2263 (D.N.J.): Carella Byrne served as Liaison Counsel in this action in which plaintiff alleged that Freshpet had failed to disclose problems relating to the manufacture of its pet food products which seriously impeded its ability to supply product to its customers. The $10,100,000 settlement was approved in March 2020.

In re: Johnson & Johnson Derivative Litigation, No. 10-2033; Monk v. Johnson & Johnson, No. 10-4841 (D.N.J.): Carella Byrne was co-lead counsel in this action asserting shareholder derivative claims and was liaison counsel in separate securities fraud claims relating to allegations that Johnson & Johnson undertook several massive secret recalls of products, violated anti-kickback laws, and engaged in off-label marketing products which resulted in expenses and governmental fines of hundreds of millions of dollars. These actions have been settled for significant recoveries on behalf of the respective classes.

In re: Schering-Plough/Enhance Securities Litigation, No. 08-397 (D.N.J.); In re Merck & Co., Inc. Vytorin/Zetia Securities Litigation, No. 08-2177 (D.N.J.): Carella Byrne was appointed as Co-Liaison Counsel in these actions which alleged that Merck and Schering-Plough failed to disclose the results of efficacy relating to Vytorin and Zetia. These actions were settled for a total of $688,000,000.

In re: Merck & Co., Inc., Securities, Derivative & “ERISA” Litigation, MDL No. 1658 (D.N.J.): Carella Byrne attorneys actively litigated to settlement this securities fraud case arising from Merck’s failure to disclose problems with commercial viability of anti-pain drug Vioxx which settled for more than $1,000,000,000.

In re: Medco/Express Scripts Merger Litigation, No. 11-4211 (D.N.J.): Carella Byrne was co-Interim Lead Counsel in this action, which challenged the $30 billion proposed merger between Medco and Express Scripts, both of which were among the largest pharmacy benefit management companies in the country. The action challenged, among other things, the $945 million breakup fee payable to Express Scripts in the event of an offer from another bidder. The settlement in this action, which was approved in April 2012, included a $300 million reduction in the breakup fee and certain additional disclosures in the proxy statements soliciting shareholder approval of the merger.

Ongoing Litigation

Carella Byrne attorneys are currently litigating the following cases and would be happy to speak to you if you believe you might be impacted by these or any other securities fraud or financial services matter. No question is too small. Please contact us today.

Hall v. Johnson & Johnson, et al., No. 18-1833 (D.N.J.): Carella Byrne is liaison counsel in this action, which alleges that the defendants intentionally concealed the truth about the presence of asbestos in the company’s Baby Power products. The revelation of this information caused investors to lose billions of dollars.

In re: Novo Nordisk Securities Litigation, No. 17-00209 (D.N.J.): Carella Byrne is liaison counsel in this action, which alleges that the defendants told investors that the company’s insulin-related sales and profits would continue to grow significantly despite knowledge to the contrary. The litigation is currently ongoing and in the settlement process with a proposed recovery of $100 million for investors.

In re: Bank of Nova Scotia Spoofing Litigation, No. 20-1159 (D.N.J.): Carella Byrne has been named as co-lead counsel in this action which alleges that traders at the Bank of Nova Scotia placed, then withdrew, false orders for precious metal commodities futures in order to manipulate prices in the bank’s favor.

In re: Aurora Cannabis Inc. Securities Litigation, No. 19-20588 (D.N.J.): Carella Byrne is serving as local counsel in this action in which it is alleged that Aurora Cannabis, a Canadian marijuana distributor, had artificially inflated its value by carrying circular sales of biomass to a related company as assets when it knew the related company could not pay.