this litigation, class counsel have performed at exceptionally high

1230 Peachtree Street
2300 Promenade II
Atlanta, GA 30309
404.873.3900 PH
404.876.4476 FX
www.chitwoodlaw.com
Chitwood Harley Harnes LLP (“Chitwood”), one of
the nation’s premier boutique litigation law firms,
specializes in protecting the rights of those harmed
by corporate fraud. During its sixteen year history,
Chitwood has prosecuted many high profile class
actions, recovering billions of dollars for class members
and forcing a variety of corporate reforms. In 2004
alone, the firm recovered $583 million for investors and
was identified as the fourth most successful securities
class action firm in terms of gross recoveries – and
the second most successful firm in terms of average
recovery – for that year by Investor Shareholder Services
(“ISS”) in its Securities Class Action Services Alert
(“SCAS 50”).
Chitwood represents both institutional investors and
individuals in a wide variety of lawsuits to remedy
corporate wrongdoing. The firm primarily pursues
securities class actions brought under the Private
Securities Litigation Reform Act of 1995 (the “PSLRA”)
but also is a leader in litigating non-PSLRA securities
cases, including derivative and corporate governance
actions, as well as antitrust and consumer protection
class actions.
The firm maintains offices in Atlanta, Georgia and
Great Neck, New York and has more than 20 attorneys.
Our dedicated litigation team includes former clerks
of federal judges, a former circuit court staff attorney,
forensic accountants and a team of highly trained
paralegals, each of whom has more than five years of
experience with complex civil litigation.
Appointed lead or co-lead counsel in dozens of cases,
Chitwood has achieved outstanding results and earned
the praise of both courts and clients. Chitwood is one
of only a handful of class action firms in the country
with significant experience representing large public
and private institutional clients. The firm prides itself
both on its high ethical standards and on its policy of
filing only those cases which appear to have significant
merit following extensive investigation and evaluation.
Chitwood’s professionalism and commitment to zealous
representation of its clients have produced outstanding
outcomes in the cases it has litigated.
L
“ ead counsel’s skills
and diligence achieved an
exceptional settlement
for the benefit
of the class.”
-.-.-.United States District Judge Thomas W. Thrash, Jr.
NORTHERN DISTRICT OF GEORGIA
In re 1996 Medaphis Corp. Securities Litigation
Martin D. Chitwood has served as lead or co-lead
counsel in more than 40 class actions nationwide and has
been instrumental in recovering billions of dollars for investors
and other class members. In a lead article in February 2004,
the Atlanta Journal/Constitution stated that Mr. Chitwood “is
considered the plaintiffs’ lawyer in the State of Georgia.” He has
also been recognized as a Georgia “Super Lawyer” by Law and
Politics each year since the inception of the award.
Recently, Mr. Chitwood served as co-lead counsel in both
the BankAmerica securities litigation in the Eastern District of
Missouri, in which $490 million was recovered for investors, and
the Oxford Health securities litigation in the Southern District
of New York, which resulted in a $300 million recovery for investors. When these
cases were resolved in 2003 they were the second and fifth largest recoveries,
respectively, since the enactment of the Private Securities Litigation Reform Act
of 1995 (the “PSLRA”). Mr. Chitwood has also served as lead trial counsel in
approximately 25 jury trials and has written and argued numerous appeals.
Mr. Chitwood has served by appointment as a Special Assistant Attorney
General for the State of Georgia to represent Georgia state pension funds in
securities class actions and has also served as lead counsel in securities class actions
for pension funds of numerous other states. He is one of the select few attorneys
who have served as lead counsel for private mutual funds that have been appointed
as lead plaintiffs in securities class action litigation. Also, Mr. Chitwood has served
as Vice President, Co-Chair of Securities, and a director of the National Association
of Securities and Consumer Law Attorneys (NASCAT). He is recognized as a leader
in the field of corporate governance reform.
Mr. Chitwood attended the University of Georgia, where he received his
A.B., M.A., and J.D. degrees, the last in 1973. Mr. Chitwood has participated as
a panelist in many professional seminars, and is the author of papers on various
aspects of securities and antitrust litigation. Additionally, he authored multiple
articles relating to securities litigation, the PSLRA and class actions published by
the Institute for Continuing Legal Education (“ICLE”) in Georgia and has presented
these articles at ICLE seminars.
Craig G. Harley has served as lead or
co-lead counsel in numerous trials, appeals,
arbitrations, mediations and other contested
matters in state and federal courts in Georgia
and elsewhere. He has held leadership roles in some of the most significant antitrust class actions
filed in recent years, including those involving the bulk vitamins, polypropylene and nylon carpet,
motorsports merchandise, carbon fiber, and food flavorings industries, and he presently serves as lead
counsel in several major securities fraud class actions pending against large Atlanta corporations. He is
proud to have assisted various courts and other entities with making cy pres distributions of unclaimed
settlement benefits in several matters, including working with the Georgia Attorney General to
distribute thousands of compact discs to Georgia’s public library systems.
Mr. Harley has presented materials at numerous class action and antitrust seminars for the
Georgia Trial Lawyers Association, the State Bar of Georgia’s Antitrust Section, and Georgia’s Institute for Continuing Legal
Education. Mr. Harley has been selected as a Georgia Super Lawyer since the inception of the list. Mr. Harley received his
B.A. degree from Duke University (1980) and his M.B.A. (1983) and J.D. (1986) degrees from Georgia State University.
C HITWOOD ’ S P RACTICE A REAS
Securities Fraud Litigation
Corporate Governance Litigation
The majority of Chitwood’s cases are securities fraud class
actions filed on behalf of shareholders of publicly traded
companies. In these actions, the firm represents investors,
frequently institutional investors such as state, county or
union pension funds, in lawsuits to recover monetary losses
caused by fraudulent misrepresentations or omissions by a
company, its officers and directors, and often its auditors,
that artificially affect the price of the company’s stock.
Corporate governance is a phrase that has recently received
much attention among institutional investors. For the
attorneys in Chitwood’s New York office, however, corporate
governance has been a focus for the past 20 years.
Corporate governance lawsuits are actions brought by
persons or entities that currently hold shares of a company’s
stock, in an effort to prevent or remedy an action that will
injure or has injured the corporation or its shareholders,
or to bring about corporate change that will improve the
company. Corporate governance litigation includes a wide
variety of shareholder actions, from derivative claims seeking
to enforce a right of the corporation, and class actions
seeking to remedy unfair dilution of the interests of public
shareholders, to declaratory or injunctive actions to vindicate
the right of shareholders to nominate, vote for, and elect
directors. These actions all have one thing in common
– they increase shareholder value in a particular company.
Investors rely on information provided by corporate
management in press releases, SEC filings and company
conference calls when making decisions to invest in a
particular company. A company’s stock price is determined
by such information, and when that information is revealed
to be false or fraudulent, investors may suffer a monetary
loss.
Cases to recover monies lost as a result of corporate fraud
are often brought as class actions, with one or more persons
or entities taking a leadership role (or serving as a “lead
plaintiff”) on behalf of all similarly situated individuals.
Congress, when enacting the PSLRA in 1995, determined
that the person or entity with the largest losses is the most
appropriate party to lead this type of litigation. As a result,
there has been an increasing trend toward institutional
investor leadership in securities fraud class actions. This
trend has resulted in higher recoveries for all investors, and
Chitwood is proud to represent a number of public and
private funds in these cases.
Sometimes a fund has a loss so significant that it may
choose to file an individual, or “opt-out”, action against a
company. In addition to serving as counsel for classes,
Chitwood counsels and represents its clients with respect
to “opt-out” actions filed by individual investment entities
under state laws.
Chitwood served as co-lead counsel in both the
BankAmerica securities litigation in the Eastern District
of Missouri, which resulted in a $490 million recovery for
investors, and the Oxford Health Plans securities litigation in
the Southern District of New York, which resulted in a $300
million recovery. At the time these cases were resolved, they
were the second and fifth largest recoveries, respectively,
since the enactment of the PSLRA.
For example, in In re M&F Worldwide Corp. Shareholder
Litigation, Ronald Perelman, who owned 35% of the
stock of M&F Worldwide Corp., a licorice company
whose management team Perelman controlled, caused
the company to purchase his 80% stake in Panavision, a
highly leveraged movie camera manufacturer. Chitwood
attorneys served as lead counsel for several M&F Worldwide
shareholders who challenged the transaction, alleging that
their company paid much too much for the Panavision
stock and that the stock of public shareholders was unfairly
diluted by the transaction. At the conclusion of the trial, but
before a ruling by the court, the Defendants settled for all of
the relief that the plaintiffs sought – the complete rescission
of the transaction. As a result of the settlement, the market
price of the stock of M&F Worldwide went from
approximately $3 per share – the point at which it had
settled when Perelman announced the transaction – to
almost $14 per share within a year of the rescission of the
transaction.
Chitwood attorneys have also participated as lead counsel
in the establishment of a score of important precedents in
corporate governance cases. A leading treatise in corporate
law, The Business Judgment Rule, et al. (5th Ed.), p. 379,
identified two Delaware corporate law decisions litigated
by Chitwood attorneys as the most significant Delaware
corporate law decisions defining the fiduciary duties of
controlling shareholders in the past 20 years.
www.chitwoodlaw.com
John F. Harnes is a
graduate of Harvard College
and Brooklyn Law School.
He was admitted to the Bar
of the state of New York in
1982. Since his admission,
Mr. Harnes has specialized
almost exclusively in securities
and corporate litigation. From
1986 to 1991 Mr. Harnes was
a litigation associate in the
New York offices of Skadden
Arps Slate Meagher & Flom. Mr. Harnes has
participated in numerous trials involving corporate
and securities matters, and he has argued on
numerous occasions before appellate courts,
including the Supreme Court of Delaware, the
New York Court of Appeals, and the First and
Second Circuits. Mr Harnes is admitted to practice
in the courts of New York, the First, Second and
Seventh Circuit Courts of Appeals, Federal District
Courts in New York and in other Districts around
the country, including Arizona and Wisconsin. Mr.
Harnes has also been admitted to practice pro hac
vice in specific cases in federal and state courts
throughout the country.
T
“ he State of Georgia was
proud to be served by the
accomplished and reputable
attorneys of Chitwood
Harley Harnes LLP.”
-.-.-.Governor Roy Barnes
IMMEDIATE PAST GOVERNOR, STATE OF GEORGIA
1999-2003
Gregory E. Keller graduated summa cum
laude from Yale University in 1979, and cum laude
from Harvard Law School in 1982. He clerked
for the Honorable Morey L. Sear, United States
District Judge for the Eastern District of Louisiana,
from 1982 to 1983. Mr. Keller was admitted to
the Bar of the State of Washington in 1983, and,
until 1994, was a partner in the Seattle law firm
of Hillis Clark Martin & Peterson, where he tried
a number of complex jury trials to successful
verdicts. Mr. Keller is also admitted to practice in
the state of New York.
Mr. Keller’s practice concentrates exclusively on corporate
and securities litigation, with a particular focus on derivative
and corporate governance actions. He is one of only a handful of
attorneys nationally with extensive experience trying securities class
action and corporate governance cases.
TOP
5
Chitwood Identified as a
Top 5 Firm
Chitwood was recognized by
Securities Class Action Services
C HITWOOD ’ S P RACTICE A REAS
Antitrust Litigation
Chitwood has litigated claims under the Sherman Antitrust Act for the past 16
years and has held leadership positions in some of the nation’s largest antitrust
cases. For example, Chitwood helped to secure a $50 million recovery related
to pricing in the carpets industry (which is based in Georgia) and a recovery of
more than $1.2 billion from price fixing in the international vitamins market.
(“SCAS”), as one of the most
successful plaintiffs’ securities
litigation firms in the country
on the 2004 “SCAS 50” list
(#4 in the nation). During 2004,
Chitwood recovered more
than $583 million for investors
who were victims of alleged
securities fraud and averaged
nearly $73 million dollars
per case in the eight cases it
resolved, ranking it number 2
for average recovery per case
The firm’s antitrust cases focus on price fixing and seek a refund of overcharges
– the difference between artificially inflated prices and what the prices would
have been in a competitive market – caused by price fixing conspiracies.
Consumer Litigation
Consumer class action lawsuits seek recovery for company-wide or industry-wide
practices that harm many individual consumers or customers in the same way.
For instance, if a company has manufactured a product with a consistent defect
or has made misrepresentations in the sale of its products that cause harm to
its customers, a single customer may sue the company on behalf of all similarly
situated customers to recover damages. Most recently, the firm’s consumer litigation practice has tended to focus on companies in the personal and information
technology fields. Cases brought against these companies require not only legal
expertise, but also mastery of the underlying technology. We have found that
high-tech companies all too frequently rush their products to market without
adequate testing and quality control and then refuse to make repairs or to fairly
compensate customers for the products’ diminished value.
among all plaintiffs’ securities
firms that settled five or more
cases. In 2003, Chitwood
was ranked number 7, and in
2005 Chitwood was ranked
In 2006, following three years of hotly contested litigation, Chitwood reached
a settlement of a class action against Seiko Epson Corporation’s American
subsidiary arising from claims that Epson inkjet printer cartridges falsely claim
to be empty and shut down while significant ink remains in the cartridge. That
settlement, valued in excess of $900 million, is one of the largest consumer class
action settlements in history.
24 on the “SCAS 50” in total
recoveries.
Regardless of the product or industry involved, Chitwood brings years of experience and consummate ability to consumer actions throughout the United States.
“[Class counsel] working on this case... [have] been in my view excellent”
and “[I] want[ed] to make note that all of you did a fine job and it is
really a pleasure to work with you over half a decade.”
United States District Judge Charles L. Brieant
Southern District of New York
case
study
•
In re Oxford Health Plans, Inc. Securities Litigation
In re Oxford Health Plans, Inc. Securities
Litigation
MDL No. 1222 (CLB) (S.D.N.Y.)
The Client: Co-lead plaintiffs PBHG Funds (private
mutual fund represented by Chitwood); Colorado
Public Employees Retirement Association, and an
individual investor (represented by co-counsel)
The Claims: The complaint alleged that Oxford made material misrepresentations to the public about its accounting
with the aid of its auditor, KPMG. At the time, the Oxford
litigation was the largest securities class action ever filed in
terms of market capital loss.
The Process: Chitwood took a leadership role in discovery
and trial preparation over the course of the six-year litigation.
Class counsel reviewed thousands of documents and established a sophisticated computerized database. The document
review process required more than two years and was staffed
by the firm’s dedicated associates. The firm worked with accounting and expert witnesses to prepare damages assess-
ment, filed and prevailed on countless motions, and spent
months preparing for trial, including organizing and participating in mock trials, working with jury consultants, and preparing exhibits and multi-media presentations.
The Result: After almost six years of litigation, the case
was settled for $300 million the weekend before the scheduled start of trial. Many corporate governance reforms related to auditing, ethics, disclosures, and board compensation
were implemented pursuant to the terms of the settlement.
The $75 million portion of the settlement paid by KPMG was
one of the largest recoveries ever from an accounting firm.
www.chitwoodlaw.com
C HITWOOD ’ S S ECURITY F RAUD M ONITORING
P ROGRAM FOR I NSTITUTIONAL I NVESTORS
Robert “Bob” Killorin is a native
of Atlanta. He received his A.B. degree, cum
laude, from Duke University in 1980. He received
his J.D. from the University of Georgia in 1983
where he participated in the Prosecutorial Clinic
and was a member of the ABA national moot
court team and the national mock trial team. Mr.
Killorin has served as lead or co-lead counsel in
numerous trials, appeals, contested hearings,
arbitrations, mediations and other matters. He
is a member of the State Bar of Georgia, the
American and Atlanta Bar Associations, and the
Georgia Trial Lawyers Association. Mr. Killorin is admitted to practice in all state trial and appellate courts, the United States District
Court for the Northern District of Georgia, the Eleventh Circuit Court
of Appeals and the U.S. Supreme Court. Mr. Killorin has handled a
broad range of civil litigation, including business and securities litigation, asbestos defense, federal admiralty claims, and international
treaty law. His practice now focuses on class, derivative, multi-plaintiff, and other complex litigation.
Darren T. Kaplan
received his B.A. degree in
political science from Syracuse
University in 1988 and his J.D.
from Hofstra University School
of Law in 1991. He was
admitted to the Connecticut
Bar in 1991, the New York Bar
in 1992 and the Georgia Bar in
2006. In addition to the state
courts of Georgia, New York
and Connecticut, Mr. Kaplan is
admitted to practice in every federal district court
in New York, the United States District Court for
the Northern District of Georgia, the U.S. Court
of Federal Claims, the U.S. Court of International
Trade, the Second, Third, Ninth, and Eleventh
Federal Circuit Courts of Appeals, and the Supreme
Court of the United States.
Mr. Kaplan joined the firm as a partner in
April 2005. He was formerly a partner at Harnes
“...
Keller LLP in New York, New York where he
litigated a number of derivative and class actions
in the areas of corporate governance, shareholder
rights, securities fraud and consumer protection.
In addition to representing shareholders in
derivative and class action litigation, Mr. Kaplan
focuses on class actions in the personal and
information technology fields. In Ades v. Microsoft Corp., he represented a nationwide class of
-.-.-.purchasers of Microsoft computer mice. He was
United
States
District
Judge John F. Nangle
co-lead counsel in Epson Ink Cartridge Cases, repSITTING IN SPECIAL DESIGNATION FOR THE
resenting a certified nationwide class of purchasers
EASTERN DISTRICT OF MISSOURI
of Epson printer ink cartridges. He is currently
In re Bank of America Securities Litigation
co-lead counsel in
Checkmate Strategic
Group, Inc. v. Yahoo!
Inc., representing a
“Class members were well served by experienced attorneys
certified class of
advertisers who claim
who, through considerable time and effort, obtained a significant
to have been overrecovery for their clients.”
charged for “fraudulent
United States District Judge Charles L. Brieant
clicks” on Yahoo! ads.
Southern District of New York • In re Oxford Health Plans, Inc. Securities Litigation
Mr. Kaplan has
substantial trial experience
and has argued appeals
in the First and Second
In re Bank of America Securities
Departments of the New
Litigation
York Appellate Division
MDL No. 1264 (E.D. Mo.)
and the Second Circuit
Court of Appeals.
The Client: Individual Investors
Over 1,500 securities fraud cases have been filed since the year 2000. While
most people are aware of the Enron and WorldCom debacles, the majority
of the cases filed each year go under most people’s radar screen. Under the
PSLRA, many of these cases warrant institutional leadership. To fulfill their
duties, fiduciaries for public funds should be aware of each case in which their
fund has class period purchases, and should file proof of claim forms at the
conclusion of each case.
Chitwood has over a decade of experience representing institutional investors
in securities litigation and is proud to have working relationships with a large
number of state, city, county, municipal and union pension funds. In order
to provide comprehensive securities representation to our clients, we have
developed a state-of-the-art, computerized monitoring program that allows us
to help our clients meet or exceed their fiduciary responsibilities with respect to
securities litigation matters.
Chitwood’s proprietary monitoring program allows the firm’s clients to make
informed decisions about each new securities lawsuit that affects the client’s
interests. As part of the program, Chitwood’s clients provide the firm with
access to data relating to their transactions in the U.S. stock markets; that
trading data is then inputted into Chitwood’s computerized database and is
cross-referenced with all securities class actions filed pursuant to the PSLRA.
Our staff of attorneys, with the advice of market specialists, assesses the merits
of each new securities case and notifies the firm’s clients of those cases which
impact their holdings.
As the Court has remarked throughout
this litigation, class counsel ... have
performed at exceptionally high levels,
and all the parties have been exceedingly
well represented.”
case
study
The Claims: The complaint alleged that BankAmerica
concealed losses that it incurred due to investments
in a hedge fund, the disclosure of which may have led
NationsBank shareholders to vote against the NationsBank
and BankAmerica merger.
By participating in Chitwood’s complimentary monitoring program, clients
possess the tools necessary for them to:
The Process: Chitwood organized
and participated in over 25 depositions,
reviewed thousands of documents and
prevailed on various motions, including
defendant’s motion to dismiss, the motion
for class certification and various motions
to compel discovery.
The Result: $490 million paid by
defendants to class members. At the time,
this was the second largest settlement
since the passage of the PSLRA.
■
Identify which securities fraud lawsuits may provide a monetary
recovery for them;
■
Determine their estimated damages in each;
■
Promptly obtain advice from experienced counsel about whether to
participate actively in a lawsuit;
■
Ensure that all appropriate claim forms are filed in cases in which
they are entitled to a recovery.
Studies continue to show that a large number of pension funds fail to file
the appropriate claim forms at the conclusion of each securities class action.
As a result, those funds fail to obtain maximum benefits for their members.
Chitwood works closely with its clients and their custodial banks to confirm
that all eligible claims are made in a timely fashion.
As counsel to dozens of funds, Chitwood takes its fiduciary responsibilities
to its clients seriously. We recommend that our clients seek a lead plaintiff
role only in those cases that have strong merits and in which the fund has
significant losses.
www.chitwoodlaw.com
T
Y
“ ou worked...like
“ hanks to everyone at Chitwood for your
Nikole Davenport has served
as lead counsel in various complex
cases. Her work includes new case
investigation and analysis, as well
as daily case management and
strategy for prosecuting securities and
antitrust class actions. In addition,
Ms. Davenport is the director of client
relations for the firm.
Ms. Davenport takes an active
role in protecting the interests of
institutional investor clients. She is
a member of the National Association of Public Pension
Attorneys, the Counsel of Institutional Investors, and
is a corporate affiliate of the National Association of
State Treasurers. Ms. Davenport also attends a number
of conferences each year that address issues relating to
public and private pension funds and regularly lectures
to pension board members and trustees. Over the past
five years, Ms. Davenport co-authored three chapters in
Litigating the Class Action Lawsuit in Georgia and has
served as a presenter at class action continuing legal
education seminars. In January 2002, Ms. Davenport
served as a panelist at the American Bar Association’s
International Cartel Symposium in New York, New York.
Ms. Davenport received her B.A. and J.D. degrees
from Temple University in 1990 and 1994, respectively.
She received an Outstanding Oral Advocacy Award while
at Temple University School of Law.
hard work and commitment to our case.
Due to your excellent teamwork in trial
preparation, we were able to maximize the
recovery for the class. I appreciate how
well you kept us informed throughout the
litigation. Your firm made it possible for
the Retirement Systems of Alabama to be
an active and effective lead plaintiff.”
-.-.-.William Kelley
GENERAL COUNSEL, RETIREMENT SYSTEMS OF ALABAMA
In re Providian Financial Corp. Securities Litigation
C LIENT R ELATIONS T EAM
demons. You absolutely
worked. And by working
as hard as you worked,
you got it. You got the
settlement that I have
to believe was a good
settlement...So I thought
you did a fine job, and
you came right up to
the plate when it was
necessary...”
-.-.-.UNITED STATES DISTRICT Judge
Charles R. Breyer
NORTHERN DISTRICT OF CALIFORNIA
In re Providian Financial Corp.
Securities Litigation
Jerry L. Gray, Director of Government Relations for
Chitwood, and partner Nikole Davenport lead the firm’s client
relations team. Dedicated to meeting the needs of the firm’s
clients, Mr. Gray and Ms. Davenport focus on issues related to
the interests of public employees and investment professionals.
Mr. Gray, a graduate of Morris Brown College, has over a
decade of marketing, management, and administrative experience, including work in the areas of contracts and procurement, governmental banking and finance, budgeting, pensions
and investments, personnel administration, and project
management. A veteran of public service, Mr. Gray was Deputy
Chief of Staff for former Governor Roy Barnes, with responsibility for the day-to-day operations of the Governor’s Office of External Affairs. In addition, Mr. Gray had oversight duties for a pension and investment budget of over
$60 billion. Prior to his service to the former Governor, Mr. Gray served as Chief of
Staff for Fulton County Commissioner Martin L. King III.
Mr. Gray has received a number of awards in recognition of his commitment
to public service. In 1999, the Georgia Legislative Black Caucus honored Mr. Gray
with the Pacesetter Award for being the only African American to hold the high
office of Deputy Chief of Staff with the Governor’s Office in the State of Georgia. In
2001, Mr. Gray received the Georgia Chapter President’s Noble Award in recognition of his outstanding contributions to the State of Georgia. From 2001-2002,
Mr. Gray participated in the Governor’s Mentor Protégé Program and in 2002 was
awarded the National Alumni Summer Conference to Make a Difference in Atlanta
and Georgia Award by the University of Arkansas Pine Bluff in his home state
of Arkansas. In addition, Mr. Gray has been recognized for his efforts to protect
Georgia’s natural resources. Between 1997 and 2004, Mr. Gray helped to raise
$160 million to conserve 70 miles of Chattahoochee River frontage and created
13,280 acres of new parklands in Georgia, culminating in his recognition as an
Outstanding Contributor to the Chattahoochee River Greenway.
“I actually did want to tell you that I thought you did an excellent
job. [A]nd if other cases come along the pike, I would be delighted to
consider you [for lead counsel] again.”
United States District Judge Charles R. Breyer
Northern District of California
case
study
•
In re Providian Financial Corp. Securities Litigation
In re Providian Financial Corporation
Securities Litigation
The Client: The Retirement Systems
of Alabama
policy for processing bankruptcy filings in mid-June 2001 so
that Providian could postpone reporting $30 million in losses
until the next quarter. From mid-June 2001 until the change
was discovered by securities analysts in late August 2001,
senior management sold off approximately $22 million of its
own Providian stock at inflated prices.
The Claims: The complaint alleged that Providian and
its senior management misled the investing public about
its expected charge-off rates on Providian’s credit card
loan portfolio throughout the Class Period. In addition,
Providian misrepresented the market segments into which
it was expanding. The complaint further alleged that the
defendants failed to disclose a change in the company’s
The Process: Judge Breyer in the Northern District of California placed the case on a fast track and in January ordered
a June trial date, despite the fact that defendants had not yet
produced the majority of documents requested in discovery
and had not produced all witnesses for depositions. With
everyone’s feet to the fire, Chitwood attorneys set up a satellite office in San Francisco, moving 20 attorneys and staff
No. C-01-3952-CRB (N.D. Ca)
members to man the case. Chitwood attorneys took on the
Morrison Forrester defense team at rocket speed, taking over
40 depositions and reviewing over 500,000 pages of documents in just a few months, fully preparing for trial.
The Result: The defendants met Chitwood’s demand for
the class of $65 million just one business day before striking
a jury. Chitwood’s intense trial preparation caused a more
than 200% increase in defendant’s offer in the last 60 days
prior to trial.
www.chitwoodlaw.com
James “Josh” Wilson
received his B.A. from Georgia
State University in 1988, his J.D.
from the University of Georgia
in 1991, and his LL.M. in Tax
Law from New York University
in 1992. While obtaining his
law degree, Mr. Wilson was an
editor for the Georgia Journal of
International and Comparative
Law, and studied and worked
abroad in both Brussels,
Belgium and Munich, Germany.
Mr. Wilson was formerly associated with
Reed Smith, LLP in New York City, where he
focused on complex business litigation and
securities arbitration before the New York Stock
Exchange and the National Association of
Securities Dealers. Mr. Wilson has participated in
several jury and bench trials in both federal and
state courts. His practice at Chitwood focuses
on securities class actions, antitrust and other
complex litigation in federal and state courts.
Mr. Wilson is admitted to practice law in the
States of Georgia and New York, before the United
States District Courts for the Middle and Northern
Districts of Georgia, and before the Southern and
Eastern Districts of New York. Mr. Wilson also is
a member of the American Bar Association, the
Atlanta Bar Association, and the New York State
Bar Association.
Krissi T. Gore is a native of Atlanta
where she attended the Lovett School before
she graduated from Phillips Academy in
Andover, Massachusetts. Ms. Gore received
her B.A. degree, cum laude, with a double
major, from Wellesley College in 1994.
During her college career, she participated in
a one-year academic program at Dartmouth
College and was a member of the Wellesley
and Dartmouth cross country teams. She
attended the Ukranian Institute at Harvard
University in 1990 and the Kiev-Mohlya
Academia in Ukraine in 1993. Ms. Gore earned her J.D. degree
in May 1999, from the University of Georgia.
Meryl W. Edelstein received her
B.S. degree, cum laude, with a double major
in accounting and finance from the University
of Florida in 1996. Ms. Edelstein received her
J.D. degree from Boston University School of
Law in 1999, where she received the Edward F.
Hennessey award for academic achievement.
While attending law school, Ms. Edelstein
completed an internship program with the
United States Securities and Exchange Commission. She completed her final semester
of law school at Oxford University in Oxford,
England, where she studied international and comparative law.
After law school, Ms. Edelstein worked as an attorney for the
United States Court of Appeals for the Eleventh Circuit. Ms.
Edelstein’s practice is devoted to corporate securities and other
complex class litigation.
Chitwood’s Unique
Characteristics
C HITWOOD ’ S L ITIGATION T EAM
Record of Achievement
Chitwood has a highly trained staff of associate attorneys who specialize in
securities law, class actions and complex civil litigation. Each case is managed
by a team of partners, associates and paralegals who provide our clients with
comprehensive representation.
✓
We have earned our reputation as
one of the nation’s top securities class
action firms. Our reputation rests
upon the outstanding results we have
achieved in high-profile cases and the
billions of dollars we have recovered
for investors.
✓
✓
Personalized Service
Our clients are our top priority, and we
work diligently to accommodate the
specific needs of each client.
Use of Technology to
Advance Client Interests
We use state-of-the-art litigation
support systems to promote
efficiency and cost savings in
portfolio monitoring, legal research,
communications, and document
management.
✓
Team Approach
We have a committed team of lawyers
and paralegals with years of securities
class action litigation and accounting
experience. The firm’s ability to pursue
securities fraud is augmented by its
team of forensic accountants and
investigators.
“The quality of what has been submitted to the Court in this case has
been excellent, and I appreciate the quality of the work and your hard
work in resolving [the case].”
United States District Judge Richard W. Story
Northern District of Georgia
case
study
•
In re JDN Realty Corp. Securities Litigation
Hillary Butler, et al. v. Provident
Mutual Life Insurance Company of
Philadelphia, et al.
(Pennsylvania Court of Common Pleas, 99-00780)
The Client: Several holders of whole life
policies issued by Provident Mutual Insurance
Company (“Provident Mutual”)
The Claims: The complaint alleged a breach of fiduciary
duty arising out of the plan of Provident Mutual and its
directors to convert from a mutual insurance company,
owned by its policyholders, to a mutual holding company
structure. The action challenged the plan on the ground
that the policyholders would receive no benefit in exchange
for surrendering their ownership interests in the mutual
insurance company.
The Process: On plaintiffs’ motion for preliminary injunction to enjoin the policyholder vote on the plan in February
1999, the Pennsylvania Court of Common Pleas temporarily
enjoined the defendants’ planned conversion until a full injunction hearing could be held. After the final injunction trial
concluded in June 1999, the Court issued written findings
and an order enjoining the defendants from proceeding with
the conversion, and as a result, the defendants withdrew the
proposed plan of conversion. The plaintiffs then amended
the complaint to compel Provident Mutual to convert to a
stock company in a manner that would distribute the value of
the company to its policyholders.
The Result: After two years of negotiation, Chitwood
attorneys achieved the complete relief sought by plaintiffs
– a sponsored demutualization through a merger with
Nationwide Financial Services, in which the policyholders
received, in either cash or stock, all of the $1.2 billion value
of Provident Mutual.
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