Recoveries

BR&B has achieved significant recoveries on behalf of class members, including institutional clients, in dozens of cases since passage of the PSLRA, including the following:

• In re WorldCom, Inc. Securities Litigation, Master File No. 02 Civ. 3288 (DLC) (S.D.N.Y.). BR&B, as co-lead counsel for lead plaintiff the Comptroller of the State of New York, the sole Trustee for the New York State Common Retirement Fund (“NYSCRF”), negotiated $6.128 billion in settlements with defendants. The first of the settlements, in which Citigroup and its affiliates and its former analyst Jack Grubman agreed to pay $2.575 billion (adjusted), was approved by the court in November 2004. Settlements totaling an additional $3.428 billion with WorldCom’s other investment bankers were reached in March 2005, during the final phases of trial preparation. Before trial, BR&B also participated with the NYSCRF in negotiating an historic settlement of the claims against WorldCom’s outside directors, which included personal contributions of $4.5 million from WorldCom’s former chairman, Bert Roberts, and $20.25 million from the other director defendants. BR&B participated with the NYSCRF in negotiating a $65 million settlement with WorldCom’s former auditor, Arthur Andersen, that was reached in April 2005, after nearly five weeks of trial and on the eve of closing arguments.
• In re Cendant Corporation Litigation, Civil Action No. 98-1664 (WHW) (D.N.J.). BR&B, as co-lead counsel, represented lead plaintiffs NYSCRF, the California Public Employees Retirement System (“CalPERS”) and the New York City Pension Funds. The litigation was settled in March 2000 through settlements with Cendant and Ernst & Young LLP for more than $3.18 billion – which, at the time, was by far the largest settlement ever achieved in a class action under the securities laws. The settlement with Cendant provided for a $2.85 billion payment to the class; entitled the class to one-half of any net proceeds that Cendant might recover from its continuing litigation against E&Y; and included significant corporate governance changes. The settlement with E&Y provided for a $335 million payment, the largest payment ever made by an outside accounting firm in a securities class action. The settlements were approved by the district court on August 15, 2000, and affirmed on appeal on August 28, 2001. Through the later resolution of the litigation between Cendant and E&Y, the class received an additional $132 million, bringing the total recovery to $3.317 billion.
• In re McKesson HBOC, Inc. Securities Litigation, Master File No. CV-99-20743 RMW (N.D.Cal.). BR&B, as co-lead counsel, represents the NYSCRF as sole lead plaintiff. BR&B vigorously prosecuted the case against the company, its management, HBOC, Inc.’s former auditor, Arthur Andersen LLP, and Bear Stearns & Co., Inc., which had issued a fairness opinion in connection with the merger between McKesson and HBOC. After contentious motion practice and during discovery, BR&B participated with the NYSCRF in negotiating settlements totaling $1.0425 billion, consisting of a $960 million settlement from the company in 2005, a $72.5 million settlement from Arthur Andersen in 2006, and a $10 million settlement from Bear Stearns in 2007.
• In re Merrill Lynch & Co., Inc. Securities, Derivative & ERISA Litigation, Master File No. 07-cv-9633 (LBS)(AJP)(DFE), before the Honorable Jed S. Rakoff in the Southern District of New York. BR&B, as co-lead counsel for sole lead plaintiff the State Teachers Retirement System of Ohio, negotiated a $475 million settlement with defendants in January 2009. The settlement was approved by the court in July 2009.
• In re Bridgestone Securities Litigation, Master File No. 3:01-0017, pending before the Honorable Robert L. Echols in the Middle District of Tennessee. BR&B, as co-lead counsel, represents intervening plaintiff the Iowa Public Employees Retirement System. BR&B, as co-lead counsel for the original lead plaintiff, vigorously opposed defendants’ motion to dismiss. This case was dismissed in 2002, but the dismissal was reversed by the United States Court of Appeals for the Sixth Circuit in 2004. IPERS intervened in the litigation after the appellate court decision and BR&B, on its behalf, engaged in extensive discovery. The parties agreed to a $30 million settlement of this litigation, during the pendency of both a renewed motion to dismiss and the motion for class certification. The settlement was approved by the court in January 2009.
• Dennis Rice v. Lafarge North America, Inc., et al., Civil No. 268974-V, before the Honorable Michael D. Mason in the Circuit Court for Montgomery County, Maryland. BR&B, as co-lead counsel, represented lead plaintiff the City of Philadelphia Board of Pensions and Retirement in this class action litigation contesting the buy-out of Lafarge North America by majority owner Lafarge S.A in 2006. After extensive discovery and injunction practice, Lafarge SA agreed to increase its tender offer price from its initial offer of $75 per share to the final price of $85.50, a benefit to the class of approximately $388 million.
• In re Chiron Shareholder Deal Litigation, Case No. RG 05-230567, before the Honorable Robert B. Freedman in the California Superior Court for Alameda County. BR&B, as lead counsel, represented an individual investor and the class in this class action litigation contesting the proposed acquisition of Chiron Corp. by Novartis AG in 2005. After extensive discovery and injunction practice, Novartis agreed to increase the offering price from its initial offer of $40 per share to the final price of $48, a benefit to the class of approximately $880 million.
• Rieff v. Evans (Allied Mutual Insurance Company Demutualization Litigation), Civil Action No. CE 35780 (Polk Cty., Iowa, District Ct.). BR&B was co-lead counsel for a class of individual mutual insurance company policyholders (as owners of the mutual, similar to shareholder-owners of a stock company) in an action against management for, among other things, conversion of the value of their ownership interests in the mutual under a theory of de facto demutualization, which theory was upheld by the Iowa Supreme Court in 2001. The case settled in 2005 for approximately $130 million.
• In re DaimlerChrysler AG Securities Litigation, Master File No. 00-993 (JJF) (D.Del.). BR&B, as co-lead counsel for institutional investors the Denver Employees Retirement Plan, the Policemen’s Annuity and Benefit Fund of Chicago, and the Municipal Employees Annuity and Benefit Fund of Chicago, negotiated a $300 million settlement in October 2003. The settlement, which was approved by the court in February 2004, was reached after extensive discovery in the United States and Europe, and during the pendency of one of defendants’ numerous motions for summary judgment.
• In re R&G Financial Corporation, et al., Civil Action No. 1:05cv04186 (JES), before the Honorable John E. Sprizzo in the Southern District of New York. BR&B, as co-lead counsel for co-lead plaintiff the City of Philadelphia Board of Pensions and Retirement, negotiated a $51 million settlement with defendants in May 2008. The settlement was approved by the court in October 2008.
• In re Applied Micro Circuits Corp. Securities Litigation, Civil Action No. 01-cv-0649-K (AJB) (S.D.Cal.). BR&B, as sole lead counsel for lead plaintiff the Florida State Board of Administration, negotiated a $60 million settlement in 2004. The settlement was reached in this vigorously litigated case after extensive discovery and contentious motion practice. Final approval of the settlement occurred on June 17, 2005.
• In re Sunbeam Securities Litigation, Case No. 98-8258-Civ-Middlebrooks (S.D. Fla.). BR&B represented a lead plaintiff group that included the CWA/ITU Negotiated Pension Plan in this litigation, which could not be prosecuted against Sunbeam itself due to its bankruptcy filing. This case resulted in settlements in 2002 totaling more than $140 million from Arthur Andersen LLP, Albert J. Dunlap, Russell Kersh and one of the company's insurers.
• In re Informix Corporation Securities Litigation, Civil Action No. C-97-1289 (N.D. Cal.). This case, in which BR&B represented a lead plaintiff group of individual investors, was resolved during the discovery phase by a settlement in 1999 valued at $132 million, consisting of $98 million from the company and its insurance carriers and $34 million from the company's outside accounting firm.
• In re 3Com Securities Litigation, Master File No. C 97-21083-EAI (N.D. Cal.). This case, in which BR&B represented a lead plaintiff group of individual investors, involved discovery taken throughout the United States and in Europe with respect to 3Com and its outside auditing firm. A settlement in the amount of $259 million was reached at the end of the discovery process, and was approved by the court in February 2001.
• Stanley, et al. v. Safeskin Corp., Lead Case No. 99cv0454-BTM (LSP) (S.D. Cal.). This case, in which BR&B represented an institutional investor, was resolved for $55 million after discovery was complete and while summary judgment motions were pending. The settlement was approved by the Court on March 20, 2003.
• In re: 1996 Medaphis Corporation Securities Litigation, Civil Action No. 1:96-CV-2088-TWT (N.D. Ga.). This case – one of the first prosecuted by a state retirement fund, the Pennsylvania Public School Employees Retirement System (“PSERS”), as lead plaintiff on behalf of investors – was filed in August 1996, and resolved in December 1997 during the discovery process by a settlement valued at $72.5 million, consisting of $20 million in cash and Medaphis securities valued at $52.5 million.
• Payne, et al. v. MicroWarehouse, Inc., et al., Case No. 3:96:-CV-1920 (DJS) (D. Conn.). This case, which was prosecuted on behalf of the class with PSERS as lead plaintiff, was filed in the District of Connecticut on October 1, 1996. In 1998, the MicroWarehouse defendants and KPMG Peat Marwick, the company's outside accounting firm, agreed to settle the case for $30 million in cash, one of the largest in the District of Connecticut.
• In re Theragenics Corp. Securities Litigation, Civil Action No. 1:99-cv-0141 (N.D.Ga.). BR&B acted as co-lead counsel for a group of investors in this litigation, which was settled in July 2004 for $10 million after extensive discovery and during the pendency of defendants’ summary judgment motion.
• In re HI/FN, Inc. Securities Litigation, Master File No. C-99-4531-SI (N.D.Cal.). BR&B acted as co-lead counsel for a group of investors in this litigation, which was settled in May 2002, during the discovery process for $9.5 million, consisting of $6.8 million in cash and 270,000 shares of Hi/fn common stock valued at $2.7 million.
• In re Peoplesoft, Inc. Securities Litigation, Master File No. C-99-0472-WHA(JL) (N.D.Cal.) BR&B acted as co-lead counsel for a group of investors in this litigation, which was settled for $15 million in May 2001, during the discovery process.
• In re Envoy Corporation Securities Litigation, Case No. 3:98-0760 (M.D. Tenn.). This litigation, in which BR&B was co-lead counsel for a group of individual investors, was settled in September 2003, for $11 million, during the pendency of defendants’ motions for summary judgment.
• In re Silicon Graphics, Inc. II Securities Litigation, Master File No. C-97-4362-SI (N.D.Cal.). This litigation, in which BR&B represented a lead plaintiff group of individual investors, was resolved in 2001 during the discovery process for $12 million, consisting of $4 million in cash and 8 million shares of Silicon Graphics common stock, valued at approximately $8 million.
• In re Green Tree Financial Corporation Stock Litigation, Master File No. 97-2666 (JRT/RLE) (D. Minn.). This case, in which BR&B represented a lead plaintiff group of individual investors, was resolved in 2003 during the discovery process for $12.45 million.
• Sherman Steele et al., v. Electronics for Imaging, Inc., Lead Case No. 403099 (Cal. Super. Ct., San Mateo Cty.). BR&B acted as co-lead counsel for a group of investors in this California state court case for violations of the California Corporations Code. This litigation settled in July 2002 for $8 million.
• Robert K. Bell, et al., v. Fore Systems, Inc., Consolidated Civil Action No. 97-1265 (W.D. Pa.). BR&B acted as co-lead counsel for a group of investors in this litigation, which was settled for $11.7 million in September 2003, during the discovery phase of the litigation.