Murray, Frank & Sailer LLP
Encyclopedia
Murray Frank LLP is a law firm based in New York City
that specializes in class action
litigation, particularly in cases involving federal securities
law, federal antitrust law, ERISA, and state consumer protection
law.
Notable Cases
The firm traces its origin to 1963, and has litigated the landmark cases of Sirota v. Solitron Devices, Inc. (holding that there is an implied right of contribution among joint tortfeasors) and Escott v. BarChris Const. Corp. (holding that a commencement of a class action tolls the statute of limitations
for claims of other class members).
Brian Murray, a current partner at the firm, prevailed on an issue of first impression in the Superior Court of Massachusetts, in Cambridge Biotech Corp. v. Deloitte and Touche LLP, in which the court applied the doctrine of continuous representation for statute of limitations purposes to accountants for the first time in Massachusetts.
Jacqueline Sailer, a former partner at the firm, prevailed in Naevus Intl., Inc. v. AT&T Corp., in which the court established limits on the reach of the Federal Communications Act on state consumer fraud claims, and Kinney v. Metro Global Media, Inc., in which the court addressed the pleading standard for fraud under the Private Securities Litigation Reform Act of 1995
for claims against an auditor, an issue of first impression in the District of Rhode Island
.
Notable Settlements
Notable Alumni
Attorney Publications
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
that specializes in class action
Class action
In law, a class action, a class suit, or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued...
litigation, particularly in cases involving federal securities
Securities fraud
Securities fraud, also known as stock fraud and investment fraud, is a practice that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of the securities laws....
law, federal antitrust law, ERISA, and state consumer protection
Consumer protection
Consumer protection laws designed to ensure fair trade competition and the free flow of truthful information in the marketplace. The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors and may provide additional...
law.
Notable Cases
The firm traces its origin to 1963, and has litigated the landmark cases of Sirota v. Solitron Devices, Inc. (holding that there is an implied right of contribution among joint tortfeasors) and Escott v. BarChris Const. Corp. (holding that a commencement of a class action tolls the statute of limitations
Statute of limitations
A statute of limitations is an enactment in a common law legal system that sets the maximum time after an event that legal proceedings based on that event may be initiated...
for claims of other class members).
Brian Murray, a current partner at the firm, prevailed on an issue of first impression in the Superior Court of Massachusetts, in Cambridge Biotech Corp. v. Deloitte and Touche LLP, in which the court applied the doctrine of continuous representation for statute of limitations purposes to accountants for the first time in Massachusetts.
Jacqueline Sailer, a former partner at the firm, prevailed in Naevus Intl., Inc. v. AT&T Corp., in which the court established limits on the reach of the Federal Communications Act on state consumer fraud claims, and Kinney v. Metro Global Media, Inc., in which the court addressed the pleading standard for fraud under the Private Securities Litigation Reform Act of 1995
Private Securities Litigation Reform Act
The United States Private Securities Litigation Reform Act of 1995, Pub. L. 104-67, 109 Stat. 737 implemented several substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation, and...
for claims against an auditor, an issue of first impression in the District of Rhode Island
United States District Court for the District of Rhode Island
The United States District Court for the District of Rhode Island is the Federal district court whose jurisdiction is the state of Rhode Island. The District Court was created in 1790 when Rhode Island ratified the Constitution...
.
Notable Settlements
- Merrill Lynch Research Reports Securities Litigation: Murray, Frank & Sailer was court appointed co-lead counsel. Plaintiffs alleged that Merrill LynchMerrill LynchMerrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...
, through its analyst Henry BlodgetHenry BlodgetHenry Blodget is an American former equity research analyst, currently banned from the securities industry, who was senior Internet analyst for CIBC Oppenheimer during the dot-com bubble and the head of the global Internet research team at Merrill Lynch...
, issued falsely positive analyst reports that Blodget himself did not believe, in an effort to obtain investment banking business. Merrill Lynch was ultimately investigated by the New York State Attorney GeneralNew York State Attorney GeneralThe New York State Attorney General is the chief legal officer of the State of New York. The office has been in existence in some form since 1626, under the Dutch colonial government of New York.The current Attorney General is Eric Schneiderman...
and paid a $100 million fine for this conduct, while Blodget was barred from the securities industry by the Securities Exchange Commission and paid $4 million in fines and disgorgement. In 2007, this litigation was settled, resulting in an additional $125 million recovery for shareholders.
- General Motors Corporation Securities and Derivative Litigation: Murray, Frank & Sailer served as initial lead counsel. Plaintiffs alleged that from 2000-2006, General MotorsGeneral MotorsGeneral Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
and its auditor Deloitte & Touche LLP issued financial statements that misstated and mischaracterized GM’s revenueRevenueIn business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
, earningsEarningsEarnings are the net benefits of a Corporation's operation. Earnings is also the amount on which corporate tax is due. For an analysis of specific aspects of corporate operations several more specific terms are used as EBIT -- earnings before interest and taxes, EBITDA - earnings before...
, and cash flowCash flowCash flow is the movement of money into or out of a business, project, or financial product. It is usually measured during a specified, finite period of time. Measurement of cash flow can be used for calculating other parameters that give information on a company's value and situation.Cash flow...
, which artificially inflated the price of various GM securities. In 2008, this litigation was settled, resulting in a $303 million recovery for GM shareholders.
- In re Williams Securities Litigation: Murray, Frank & Sailer served as additional Plaintiffs’ counsel. Plaintiffs alleged that between 2000 and 2002, the Williams CompaniesWilliams CompaniesThe Williams Companies, Inc. is an energy company based in Tulsa, Oklahoma. Its core business is natural gas exploration, production, processing, and transportation, with additional petroleum and electricity generation assets...
made various false and misleading statements that inflated prices of various Williams securities. In 2007, this litigation was settled, resulting in a $311 million recovery for Williams shareholders. Murray, Frank & Sailer represented a client who had purchased Feline PAC preferred securities worth $125; the firm obtained a $10 million recovery for the subclass of that security’s purchasers.
- In re Royal Ahold Securities Litigation: Murray, Frank & Sailer served as additional Plaintiffs’ counsel. Plaintiffs alleged that AholdAholdAhold is a major international supermarket operator based in Amsterdam, Netherlands. Ahold is listed on Euronext Amsterdam and the Frankfurt Stock Exchange.-History:...
issued various false and misleading statements between 1999 and 2003, and was ultimately forced to announce billions of dollars in restatements of revenue and earnings in connection with its operations around the world. In 2006, the litigation was settled, resulting in a $1.1 billion recovery for Ahold shareholders.
Notable Alumni
- Maurice Pesso is a partner at White & Williams LLP.
- Paul Curley is a partner at Kaufman Borgeest & Ryan LLP.
- Eric Belfi is a partner at Labaton Sucharow LLP.
- Sharon Lee is a partner at Lieff Cabraser Heimann & Bernstein, LLP.
Attorney Publications
- Benjamin Bianco, Recent Developments in Class Arbitration, MEALEY’S LITIGATION REPORT, Sept. 17, 2009.
- Brian P Murray, Lifting the PSLRA “Automatic Stay” of Discovery, N. DAK. L. REV. 405 (2004).
- Brian P Murray, Aftermarket Purchaser Standing Under Section 11 of the Securities Act of 1933, 73 ST. JOHN’S L. REV. 633 (1999).
- Brian P Murray, Recent Rulings Allow Section 11 Suits By Aftermarket Securities Purchasers, NEW YORK LAW JOURNAL (Sept. 24, 1998).
- Brian P. Murray and Eric J. Belfi, The Proportionate Trading Model: Real Science or Junk Science?, 52 CLEVELAND ST. L. REV. 391 (2004-05).
- Brian P. Murray and Leo W. Desmond, Determining Excessive Trading in Option Accounts: A Synthetic Valuation Approach, 23 U. DAYTON L. REV. 316 (1997).
- Brian P. Murray and Joseph P. Garland, Subject Matter Jurisdiction Under the Federal Securities Laws: The State of Affairs After Itoba, 20 MARYLAND JOURNAL OF INT'L LAW AND TRADE 235 (1996).
- Brian P. Murray and Sharon Lee, The PSLRA “Automatic Stay” of Discovery, NEW YORK LAW JOURNAL (March 3, 2003).
- Brian P. Murray and Gregory B. Linkh, Inherent Risk In Securities Cases In The Second Circuit, NEW YORK LAW JOURNAL, Aug. 26, 2004.
- Brian P. Murray and Maurice Pesso, The Accident of Efficiency: Foreign Exchanges, American Depository Receipts, and Space Arbitrage, 51 BUFFALO L. REV. 383 (2003).
- Brian P. Murray and Joseph C. Rosa, He Lies, You Die: Criminal Trials, Truth, Perjury, and Fairness, 27 NEW ENGLAND JOURNAL ON CRIMINAL AND CIVIL CONFINEMENT 1 (2001).
- Brian P. Murray and Jacqueline Sailer, Loss Causation Pleading Standard, NEW YORK LAW JOURNAL (Feb. 25, 2005).
- Brian P. Murray and Donald J. Wallace, You Shouldn't Be Required To Plead More Than You Have To Prove, 53 BAYLOR L. REV. 783 (2001).
- Gregory Frank, Preclusive Effect Of The Federal Securities Laws On Actions Brought Pursuant To Antitrust Laws, NEW YORK LAW JOURNAL (January 7, 2010).
- Marvin L Frank and Brian D. Brooks, Securities Class Actions: Improving Corporate Governance Through Accountability, INTERNATIONAL BAR ASSOCIATION SECURITIES LAW COMMITTEE NEWSLETTER, Aug. 2010.
- Marvin L. Frank and Gregory B. Linkh, Staying Derivative Actions Pursuant to PSLRA and SLUSA, NEW YORK LAW JOURNAL, P. 4, Col. 4, Oct. 21, 2005, and SECURITIES REFORM ACT LITIGATION REPORTER, Vol. 20, No. 3, Dec. 2005.