Financial Fraud

As one of the only firms in the country free from conflicts and able to sue every major Wall Street financial institution, Susman Godfrey has represented numerous parties sustaining losses in the wake of the global financial crisis.

Because we have a reputation for trying cases, we are also effective at settling them. We are often hired in cases involving investment banks, accounting and auditing firms, private equity and hedge funds, commercial banks, large companies, and other financial institutions. We handle cases for both plaintiffs and defendants. On the plaintiffs’ side, we prefer to work on a contingent fee basis so that we get paid only if we win, and so our economic  interests are completely aligned with our clients’ interests.

  • Assured Guaranty v. Flagstar Bank — We represented the first monoline insurance company to go to trial against an originator and sponsor of residential mortgage-backed securities, winning a judgment worth (and then settling the case for) over $100 million.
  • ORIX v. UBS (Paine Webber)— We represented ORIX, the trustee of two Commercial Mortgage-Backed Securities pools, in two lawsuits against UBS, which had acquired Paine Webber.  The suits alleged that Paine Webber had improperly placed in the trusts properties that were likely to default.  The cases both went to trial, and both were favorably settled after jury selection.
  • Argent Classic Convertible Arbitrage Fund L.P. v. Countrywide Financial Corporation— Susman Godfrey, along with co-counsel, represented investors who were allegedly defrauded into purchasing securities issued by Countrywide, a leading originator of subprime mortgage loans.   The case was settled by members of the class after class certification was denied
  • Folsom v. IndyMac Bancorp, Inc. — Susman Godfrey served as court-appointed co-lead counsel representing investors who were allegedly defrauded into purchasing securities issued by the parent of mortgage lender IndyMac Bank. The complaint alleged that IndyMac officers misrepresented the bank’s financial health and the quality of its lending practices, and the value of the securities dropped substantially when the truth about the bank’s financial health was disclosed. The case was settled as to the officer defendants for $6.5 million and the accountant defendant was dismissed.
  • American Association for Justice v. Wachovia– We represented the American Association for Justice (AAJ) in a dispute against Wachovia for breach of a loan commitment to AAJ for an $89.5 million loan. AAJ intended to use the loan to purchase a new headquarters office building in Washington, DC. Wachovia claimed that a “material adverse change” in capital market conditions in October 2007 impaired its ability to sell the loan and thus excused its performance.