Experience

Areas of Focus and Representative Matters

Complex Commercial Litigation
  • Represent a nationwide retailer in class action litigation and related proceedings before the Pennsylvania Department of Revenue, in which plaintiffs challenge the method used to calculate and collect sales tax on discounted items.
  • Represented an investment research firm in litigation brought by a Receiver in control of several defunct hedge funds, asserting claims of contribution and common law aiding and abetting, from a judgment obtained by the SEC against the defunct hedge funds. Trial defense verdict on all claims.
  • Represented the CEO of a multinational corporation in a suit alleging fraud and breach of contract.  Preliminary objections granted on all claims. Dismissal was affirmed by the Pennsylvania Superior Court.
  • Represented an internet services provider in a business disruption lawsuit alleging that a company was forced out of business because of actions taken by the internet service provider.  Trial defense verdict on all claims.
  • Represented an investor in an action against a financial institution trustee over its failure to safeguard viatical contract investments, which were converted and sold to another investor to the detriment of the original investor.  Trial verdict obtained on behalf of client.
  • Represented a commercial recycling resources company in a lawsuit filed against it by an equipment leasing company alleging breach of a leasing and financing contract related to industrial machinery.  We obtained critical information from third parties that undercut the claim, and resulted in a trial defense verdict on all claims.
  • Represented a life insurance company in a multimillion-dollar dispute with a company over payout of key man life insurance policies because of misrepresentations made by the policyholder during the application process and during the contestability period.
  • Represented an investment management firm against claims that the investment management firm had (1) acted outside authority granted to it in an Investment Management Agreement, and (2) violated Pennsylvania and Illinois law by recording calls it had with the investor allegedly without the investor’s consent.
  • Represented a former General Counsel and interim Chief Executive Officer in a suit for defamation brought by the former Chief Executive Officer of a life sciences company.
  • Represented an advocacy group sued for alleged defamation after it posted a video of attendees of an event along with a description of the actions of individuals attending the event.
  • Represented a life insurance company sued by a university foundation for alleged misrepresentations related to long term premiums and investment performance on policies that foundation donors obtained for the benefit of the foundation.
  • Represented a  disability insurance company in a multimillion-dollar dispute over payout of professional disability policies because of misrepresentations made by policyholder during the application process and claim submission process.
  • Represented an executive search firm in litigation over withheld placement fees.
  • Represented a franchisee in litigation with a nationwide franchisor of early childhood education centers over alleged breaches of franchise agreement.
  • Represented a life insurance company in joinder proceeding over disputed policy proceeds.
  • Represented a coalition of families of charter school students who intervened in litigation over school funding where funds had been improperly withheld from the charter school by a school district.
  • Represented a financial institution in an action based on employee theft of customer information, including claims of unfair trade practices, breach of confidentiality, breach of fiduciary duty, negligence, and negligent supervision.
  • Represented the U.S. subsidiary of a multinational company with respect to  privacy disclosure issues and policies for safeguarding and disposing of customer and employee personal information.

*Matters include cases handled by Dailey LLP attorneys at prior firms.

 

Class Actions
  • Represent a nationwide retailer in class action litigation in the Philadelphia Court of Common Pleas, and related proceedings before the Pennsylvania Department of Revenue, challenging the method used to calculate and collect sales tax on discounted items.
  • Represented the former President of a publicly traded bank and credit card company in securities class action litigation, alleging insider trading under Section 20A, and control liability under Section 20(a), of the Securities and Exchange Act.  All claims were dismissed at the motion to dismiss stage.
  • Represented an outside director in shareholder litigation asserting Section 10(b) and Section 20(a) claims and a Breach of Duty of Care claim under Wyoming law. All claims were voluntarily withdrawn by plaintiffs.
  • Represented an outside auditor in a series of consolidated securities class actions claiming that the accounting firm committed securities violations during its audits of an international manufacturer.  All claims were dismissed on the grounds of international comity.
  • Represented a health insurer in provider reimbursement class action.  All claims were dismissed by the trial court. Dismissal was affirmed by the Superior Court of New Jersey, Appellate Division.
  • Represented an outside auditor in more than a dozen class and individual lawsuits in Multidistrict Litigation, asserting Section 10(b) and Section 11 claims.  A Motion to Dismiss was partially successful, with the Section 11 claim dismissed on statute of limitations grounds. The case ultimately settled for less than 1/3 the national average for cases of this size.
  • Represented an outside auditor in consolidated shareholder and bondholder class actions arising out of the bankruptcy of a specialty finance company that lent money to health care providers.  The class actions asserted claims for securities fraud under Section 10(b) of the Securities and Exchange Act. Obtained a favorable settlement prior to trial that was less than the anticipated costs of trial.

*Matters include cases handled by Dailey LLP attorneys at prior firms.

 

Professional Liability
  • Represented a Big 4 accounting firm in a series of consolidated securities class actions claiming that the accounting firm committed securities violations during its audits of an international manufacturer.  All claims were dismissed on the grounds of international comity.
  • Represented a Big 4 accounting firm in an action brought by the Liquidating Trustee of a specialty finance company.  The Liquidating Trustee sought in excess of $300 million related to claims for professional malpractice, breach of contract, negligent misrepresentation, fraud, aiding and abetting fraud, aiding and abetting breach of fiduciary duty and deepening insolvency.  The Court dismissed the aiding and abetting fraud claim, and the Trustee subsequently dropped its claims for fraud and deepening insolvency. Summary judgment was granted on all remaining claims. The Second Circuit affirmed the order granting Summary Judgment.
  • Represented a Top 20 accounting firm in a Madoff-related suit in the S.D.N.Y. brought by limited partners in a sub-feeder fund.  The motion to dismiss was granted on all claims.
  • Represented a Big 4 accounting firm in litigation brought by a limited partner in a real estate limited partnership claiming that the limited partnership and other defendants committed fraud by not providing appropriate amounts of distributions as required. The motion to dismiss was granted on all claims.
  • Represented Big 4 accounting firm in an action by one of the world’s largest banks on behalf of a syndicate of lenders seeking over $50 million for alleged negligent misrepresentation related to the bankruptcy of a borrower, and subsequent discovery that the borrower’s CFO had submitted false borrowing base reports to the lenders.
  • Represented a Big 4 accounting firm in a fraud suit filed by purchasers of an entity for whom the firm had performed due diligence services.  Plaintiff claimed that the acquisition target had adopted an improper revenue recognition methodology and fraudulently concealed the financial condition of the company in preparation for a sale, and that the accounting firm made fraudulent misrepresentations in its Report and in discussions that helped the majority shareholders fraudulently obscure the acquisition company’s true financial condition.  
  • Represented a Big 4 accounting firm in an action by a bankruptcy trustee for a failed airline that filed for bankruptcy.  The bankruptcy case was converted to a Chapter 7 liquidation and Plaintiff filed suit on behalf of a number of creditors alleging claims for fraud and negligence.  After several motions in limine were granted in favor of the accounting firm, the bankruptcy trustee settled the matter on the eve of trial for less than 2% of the amount sought.
  • Represented an outside auditor in more than a dozen class and individual lawsuits in Multidistrict Litigation, asserting Section 10(b) and Section 11 claims.  A Motion to Dismiss was partially successful, with the Section 11 claim dismissed on statute of limitations grounds. The case ultimately settled for less than 1/3 the national average for cases of this size.
  • Represented an outside auditor in consolidated shareholder and bondholder class actions arising out of the bankruptcy of a specialty finance company that lent money to health care providers.  The class actions asserted claims for securities fraud under Section 10(b) of the Securities and Exchange Act. Obtained a favorable settlement prior to trial that was less than the anticipated costs of trial.
  • Represented a Top 20 accounting firm in consolidated lawsuits by former tax services clients, asserting gross negligence, breach of contract and misrepresentation claims. Case settled on favorable terms.
  • Representing a Top 20 accounting firm in a case brought by a bank client and certain of its shareholders, alleging that the accounting firm committed negligence and gross negligence in performing services for the bank, which allegedly caused damages to the bank and shareholders. After the court granted defendants’ motion to dismiss, plaintiffs filed an amended complaint.  The trial court dismissed two of the three claims brought by plaintiffs, including the entirety of the shareholders’ claim. The sole remaining claim was settled on favorable terms at mediation required under the terms of the contract.
  • Represented an accounting firm in a lawsuit brought by a non-profit client over the theft of funds by an employee of the non-profit over a three-year period.
  • Represented an accounting firm in an action brought by a third party over the firm’s books and records review that determined that over $80 million was due its client under a stock purchase agreement.  The third party sued the accounting firm for (1) fraud, (2) breach of confidentiality agreement, (3) misappropriation of trade secrets, (4) conversion, and (5) to enjoin the accounting firm from turning over any materials from their review to their client.  We obtained a stay of all proceedings pending resolution of the litigation between the third party and the client. Plaintiffs later discontinued the action with prejudice.
  • Represented audit firm with respect to the appropriate response to PCAOB Comment Letter regarding the firm’s internal and quality controls.
  • Represented an individual audit partner in a PCAOB enforcement action and negotiated a settlement on his behalf.
  • Represented the outside auditor of a bank in an FDIC investigation into the causes of the bank’s failure.  No claims brought against accounting firm.
  • Represented a law firm in multiple actions seeking millions of dollars pursuant to Pennsylvania’s wrongful use of civil proceedings statute.  While motions for summary judgment were pending and motions in limine were being argued, the matter settled on favorable terms.

*Matters include cases handled by Dailey LLP attorneys at prior firms.

 

Shareholder and Derivative Litigation
  • Represented an investment research firm in securities litigation brought by a Receiver in control of several defunct hedge funds in the U.S. District Court for the Eastern District of Pennsylvania, asserting claims of contribution under Section 10(b), and common law aiding and abetting, from a judgment obtained by the SEC against the defunct hedge funds. Trial defense verdict on all claims.
  • Represented an investment research firm in litigation brought by investors in a defunct hedge fund in the U.S. District Court for the Eastern District of Pennsylvania, asserting Section 10(b), fraud and aiding and abetting claims. Claims voluntarily dismissed after a full defense verdict at trial in a related case.
  • Represented an outside auditor against securities claims brought by several bondholders in the U.S. District Court for the Eastern District of Pennsylvania, who opted out of a class action and asserted Section 10(b) and Section 18 claims.  Numerous state law claims were dismissed on a motion to dismiss and after discovery, summary judgment was granted as to all remaining claims.
  • Represented the former President of a publicly traded bank and credit card company in securities class action litigation in the U.S. District Court for the Eastern District of Pennsylvania, alleging insider trading under Section 20A, and control liability under Section 20(a), of the Securities and Exchange Act.  All claims were dismissed at the motion to dismiss stage.
  • Represented recruitment and employment services corporation and several of its officers and directors in federal securities class action filed in the U.S. District Court for the Eastern District of Pennsylvania.  Court granted defendants’ motion to dismiss the complaint which alleged that certain of the company’s earnings forecasts were materially false and misleading.
  • Represented pharmaceutical company and several of its officers in federal securities class action filed in the U.S. District Court for the Southern District of New York.  District court granted defendants’ motion to dismiss the complaint which alleged that the company failed to disclose material information relating to the safety profile of one of its prescription medicines; the Second Circuit affirmed the dismissal on appeal.
  • Represented biotechnology company and several of its officers in federal securities class action filed in the U.S. District Court for the Eastern District of Pennsylvania.  District court granted defendants’ motion to dismiss both the complaint and the amended complaint which alleged that the company misrepresented its ability to meet certain requirements for regulatory approval of its flagship drug in the United States and Europe; the Third Circuit affirmed the dismissal on appeal.  In a related action, the district court also granted the defendants’ motion to dismiss a shareholder derivative action filed against the company’s officers and directors for alleged breach of fiduciary duty in allowing the company to allegedly misrepresent the company’s ability to meet certain requirements for regulatory approval of flagship drug.
  • Represented pharmaceutical company and several of its officers in federal securities class action filed in the U.S. District Court for the Eastern District of New York.  After converting the defendants’ motion to dismiss to one for summary judgment, district court granted the motion and dismissed the complaint which alleged that the company failed to disclose material safety and marketing information regarding its prescription medicine.
  • Represented management software corporation and several of its officers and directors in federal securities class action filed in the U.S. District Court for the Eastern District of Pennsylvania.  Court granted defendants’ motion to dismiss the complaint which that the company made material misstatements in interim financial statements that the company restated.
  • Represented small ultrasound imaging company and several of its officers and directors in federal securities action filed in the U.S. District Court for the Eastern District of Pennsylvania.  Court granted defendants’ motion to dismiss complaint which alleged that defendants allegedly violated Section 14(a) of the Securities Exchange Act.
  • Represented former CEO and CFO of a convenience food manufacturing and marketing company in federal securities class action filed in the U.S. District Court for the District of New Jersey.  Court granted defendants’ motion to dismiss complaint which alleged that they misrepresented the status of the company’s internal controls and financial condition.
  • Represented an outside director in shareholder litigation asserting Section 10(b) and Section 20(a) claims and a Breach of Duty of Care claim under Wyoming law. All claims were voluntarily withdrawn by plaintiffs.
  • Represented a Big 4 accounting firm in a series of consolidated securities class actions filed in the U.S. District Court for the Eastern District of Pennsylvania, claiming that the accounting firm committed securities violations during its audits of an international manufacturer.  All claims were dismissed on the grounds of international comity.
  • Represented an investment management firm against claims that the investment management firm had (1) acted outside authority granted to it in an Investment Management Agreement, and (2) violated Pennsylvania and Illinois law by recording calls it had with the investor allegedly without the investor’s consent.
  • Represented an outside auditor in consolidated shareholder and bondholder class actions arising out of the bankruptcy of a specialty finance company that lent money to health care providers filed in the U.S. District Court for the Eastern District of Pennsylvania.  The class actions asserted claims for securities fraud under Section 10(b) of the Securities and Exchange Act. Obtained a favorable settlement prior to trial that was less than the anticipated costs of trial.
  • Represented a publicly traded bank holding company in litigation filed in the U.S. District Court for the Western District of Kentucky by an activist investor, asserting state securities law and other claims arising out of an investment made as part of private placement.  After taking over the case from another firm, the case settled within two months on favorable terms.
  • Represented an outside auditor in more than a dozen class and individual lawsuits in Multidistrict Litigation in the U.S. District Court for the Northern District of Texas, asserting Section 10(b) and Section 11 claims.  A Motion to Dismiss was partially successful, with the Section 11 claim dismissed on statute of limitations grounds. The case ultimately settled for less than 1/3 the national average for cases of this size.

*Matters include cases handled by Dailey LLP attorneys at prior firms.

SEC Enforcement Matters
  • Represented an accounting firm in connection with an SEC investigation of a specialty finance lender and potential accounting issues related to securitizations and allowance for loss on receivables.
  • Represented an accounting firm in connection with an SEC investigation of a hospital system and various potential accounting issues related to its issuance of bonds.
  • Represented the former interim CEO and General Counsel of a life sciences company in connection with an SEC investigation of alleged insider trading and related party transactions by fund investors and former executives.
  • Represented an accounting firm in an SEC investigation of a publicly traded bank holding company related to revenue recognition and its accounting for allowance for loss on receivables.
  • Represented an accounting firm in an SEC investigation of a publicly traded bank related to revenue recognition issues.
  • Represented an accounting firm in an SEC investigation of an energy company and its accounting for various acquisitions.

*Matters include cases handled by Dailey LLP attorneys at prior firms.

Internal Investigations
  • Represented a special committee of the Board of an energy supplier in connection with an internal investigation into whether certain potential tax liability issues were properly accounted for and disclosed.
  • Represented the Board of a nationwide fast casual restaurant chain in connection with an internal investigation into whether the prior owners, board and management made misrepresentations about the financial condition of the entity during certain transactions.

*Matters include cases handled by Dailey LLP attorneys at prior firms.