Milberg Investigators & Forensic Accountants
Investigative Pioneers, Maximizing Recoveries for Investors & Consumers

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Investigation Results

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The results of Milberg’s investigations are reflected in the firm’s success in achieving meaningful recoveries for victims of corporate wrongdoing. Milberg has been responsible for recoveries valued at approximately $50 billion.  A sampling of the firm’s successes is listed below:

  • In re Vivendi Universal, S.A. Securities Litigation, No. 05-5571 (S.D.N.Y.).  On behalf of an international class of investors, Milberg represented lead plaintiff the Retirement System for the General Employees of the City of Miami and several individuals in the successful prosecution of the recent securities fraud trial against French conglomerate Vivendi S.A.  The case culminated in a critical jury verdict for the plaintiffs on January 29, 2010.  Tried before Judge Richard J. Holwell in New York federal court, the Vivendi litigation is one of only nine securities class actions tried to verdict based on conduct occurring after the passage of the Private Securities Litigation Reform Act in 1995.
  • In re Initial Public Offering Securities Litigation, No. 21-92 (S.D.N.Y.).  Milberg represented investors in 310 consolidated securities actions arising from an alleged market manipulation scheme.  Plaintiffs alleged, among other things, that approximately 55 defendant investment banks, in dealing with certain of their clients, conditioned certain allocations of shares in initial public offerings on the subsequent purchase of more shares in the aftermarket, thus artificially boosting the prices of the subject securities.  This fraudulent scheme, plaintiffs alleged, was a major contributing factor in the now infamous technology “bubble” of the late 1990s and early 2000s.  As a member of the court-appointed Plaintiffs’ Executive Committee, and with certain partners appointed by the court as liaison counsel, Milberg oversaw the efforts of approximately 60 plaintiffs’ firms in combating some of the most well-respected defense firms in the nation.   In granting final approval to a $586 million settlement on October 6, 2009, the court described the law firms comprising the Plaintiffs’ Executive Committee as the “cream of the crop.”
  • Carlson v. Xerox, No. 00-1621 (D. Conn).  Milberg served as co-lead counsel in this lawsuit, which consolidated 21 related cases alleging violations of the federal securities laws.  Plaintiffs alleged that Xerox and several of its top officers reported false financial results during the class period and failed to adhere to the standard accounting practices the company claimed to have followed.  In the course of litigating plaintiffs’ claims, Milberg engaged in arduous and exhaustive factual discovery, including review and analysis of more than four million pages of complex accounting and auditing documents and thousands of pages of SEC deposition transcripts.  Plaintiffs’ claims survived three motions to dismiss and a motion for summary judgment, ultimately resulting in a $750 million settlement, which received final approval on January 14, 2009.
  • In re Tyco International Ltd., Securities Litigation, MDL No. 02-1335 (D.N.H.).  Milberg served as co-lead counsel in this litigation, which involved claims under the Securities Act of 1933 and the Securities Exchange Act of 1934 against Tyco and its former CEO, CFO, general counsel, and certain former directors arising out of allegations of Tyco’s $5.8 billion overstatement of income and $900 million in insider trading, plus hundreds of millions of dollars looted by insiders motivated to commit the fraud.  Plaintiffs also asserted claims under the 1933 and 1934 Acts against PricewaterhouseCoopers LLP for allegedly publishing false audit opinions on Tyco’s financial statements during the class period and failing to audit Tyco properly, despite knowledge of the fraud.  On December 19, 2007, the court approved a $3.2 billion settlement of the plaintiffs’ claims and praised the work of co-lead counsel.
  • In re General Electric Co. ERISA Litigation, No. 04-1398 (N.D.N.Y.).  This ERISA class action was brought on behalf of current and former participants and beneficiaries of the General Electric (“G.E.”) 401(k) Plan.  Milberg, serving as co-lead counsel, achieved a $40 million settlement on behalf of current and former G.E. employees who claimed that the company’s 401(k) Plan fiduciaries imprudently invested more than two-thirds of the Plan’s assets in company stock.  The settlement included important structural changes to G.E.’s 401(k) Plan, valued at more than $100 million.
  • In re Biovail Corp. Securities Litigation, No. 03-8917 (S.D.N.Y.).  Milberg, representing Local 282 Welfare Trust Fund and serving as co-lead counsel, litigated this complex securities class action brought on behalf of a class of defrauded investors, alleging that defendants made a series of materially false and misleading statements concerning Canadian company Biovail’s publicly reported financial results and the company’s new hypertension/blood pressure drug, Cardizem LA.  This was a highly complex case in which counsel took numerous depositions across the U.S. and Canada and obtained documents from defendants and third parties, including UBS, McKinsey & Co., and Merrill Lynch.  Milberg obtained a $138 million settlement for the class, and Biovail agreed to institute significant corporate governance changes.
  • In re Nortel Networks Corp. Securities Litigation, No. 01-1855 (S.D.N.Y.).  In this federal securities fraud class action, Milberg served as lead counsel for the class and the court-appointed lead plaintiff, the Trustees of the Ontario Public Service Employees’ Union Pension Plan Trust Fund.  In certifying the class, the court specifically rejected the defendants’ argument that those who traded in Nortel securities on the Toronto Stock Exchange (and not the New York Stock Exchange) should be excluded from the class.  The Second Circuit denied the defendants’ attempted appeal.  On January 29, 2007, the court approved a settlement valued at $1.142 billion.
  • In re American Express Financial Advisors Securities Litigation, No. 04-1773 (S.D.N.Y.). This case involved allegations that American Express Financial Advisors violated securities laws by representing to class members that the company would provide tailored financial advice, when the company actually provided “canned” financial plans and advice designed to steer clients into American Express and certain nonproprietary mutual funds.  The case settled for $100 million, with the settlement agreement requiring that the company institute remedial measures.
  • In re Lucent Technologies, Inc. Securities Litigation, No. 00-621 (D.N.J.).  In this federal securities fraud action in which Milberg served as co-lead counsel, plaintiffs alleged, among other things, that Lucent and its senior officers misrepresented the demand for Lucent’s optical networking products and improperly recognized hundreds of millions of dollars in revenues.  The settlement provided compensation of $600 million to aggrieved shareholders who purchased Lucent stock between October 1999 and December 2000.
  • In re Raytheon Securities Litigation, No. 99-12142 (D. Mass.).  This case, in which Milberg served as lead counsel, concerned claims that a major defense contractor failed to write down assets adequately on long-term construction contracts.  In May 2004, Raytheon and its auditor, PricewaterhouseCoopers LLP, settled for a total of $460 million.
  • In re Rite Aid Securities Litigation, No. 99-1349 (E.D. Pa.)  Milberg served as co-lead counsel in this case asserting federal securities fraud claims arising out of allegations that Rite Aid failed to disclose material problems with its store expansion and modernization program, resulting in artificially inflated earnings.  The action resulted in settlements totaling $334 million from Rite Aid ($207 million), KPMG ($125 million), and certain former executives of Rite Aid ($1.6 million).
  • In re CMS Energy Corp. Securities Litigation, No. 02-72004 (E.D. Mich.) This federal securities fraud case, in which Milberg serced as co-lead counsel, alleged roundtrip trading practices by CMS Energy Corporationm which artificially boosted revenues and earnings.  Information uncovered by Milberg investigators contr Judge Steeh approved a cash settlement of more than $200 million. 
  • In re Deutsche Telekom AG Securities Litigation, No. 00-9475 (S.D.N.Y.).  Milberg served as co-lead counsel in this securities class action alleging that Deutsche Telekom issued a false and misleading registration statement, which improperly failed to disclose its plans to acquire VoiceStream Wireless Corporation and materially overstated the value of the company’s real estate assets.  On June 14, 2005, Judge Buchwald approved a $120 million cash settlement.
  • In re CVS Corp. Securities Litigation, No. 01-11464 (D. Mass).  Milberg served as co-lead counsel in this class action alleging that defendants engaged in a series of accounting improprieties and issued false and misleading statements that artificially inflated the price of CVS stock.  On September 7, 2005, Judge Tauro approved a $110 million cash settlement for shareholders who acquired CVS stock between February 6, 2001, and October 30, 2001.
  • Scheiner v. i2 Technologies, Inc., No. 01-418 (N.D. Tex.).  Milberg served as lead counsel in this securities fraud case filed on behalf of certain purchasers of i2 common stock.  The plaintiffs alleged that certain of the company’s senior executives made materially false and misleading statements and omissions in i2’s public statements and other public documents regarding i2’s software, thereby artificially inflating the price of i2’s common stock.  In May 2004, Milberg recovered a settlement of $84.85 million.
  • In re Royal Dutch/Shell Transport ERISA Litigation, No. 04-1398 (D.N.J.).  This was an ERISA breach of fiduciary duty class action against the Royal Dutch/Shell Oil Group of Companies on behalf of certain of the companies’ U.S. employee investment plan participants.  Notably, the $90 million settlement included important provisions regarding the monitoring and training of individuals appointed to be ERISA fiduciaries.
  • Irvine v. ImClone Systems, Inc., No. 02-0109 (S.D.N.Y.).  Milberg served as co-lead counsel in this case in which a $75 million cash settlement was approved by the court in July 2005.  Plaintiffs alleged that ImClone made misrepresentations and fraudulent statements to the market regarding the likelihood of approval of the drug Erbitux, thereby artificially inflating the price of ImClone stock.
  • In re W.R. Grace & Co. (Official Committee of Asbestos Personal Injury Claimants v. Sealed Air Corp. and Official Committee of Asbestos Personal Injury Claimants v. Fresenius Medical Care Holdings, Inc.), Nos. 02-2210 and 02-2211 (D. Del.), Milberg acted as lead counsel for the asbestos personal injury and property damage committees in two separate fraudulent conveyance actions within the W.R. Grace bankruptcy.  The actions sought to return the assets of Sealed Air Corporation and Fresenius Medical Care Holdings (each of which had been Grace subsidiaries pre-bankruptcy) to the W.R. Grace bankruptcy estate.  Complaints in both cases were filed in mid-March 2002, and agreements in principle in both cases were reached on November 27, 2002, the last business day before trial was set to begin in the Sealed Air matter.  The two settlements, which consisted of both cash and stock, were valued at approximately $1 billion.
  • Nelson v. Pacific Life Insurance Co., No. 03-131 (S.D. Ga.).  Milberg served as lead counsel in this securities fraud class action arising from allegations of deceptive sales of deferred annuity tax shelters to investors for placement in retirement plans that are already tax-qualified.  The court approved a $60 million settlement of claims arising from such deception.
  • In re Prudential Insurance Co. Sales Practice Litigation, No. 95-4704 (D.N.J.).  The Firm was lead counsel in this landmark securities case that resulted in a recovery exceeding $4 billion for Prudential policyholders.  The settlement was upheld in a comprehensive decision by the Third Circuit Court of Appeals.
  • In re NASDAQ Market-Makers Antitrust Litigation, No. 94-3996  (S.D.N.Y.), Milberg served as co-lead counsel for a class of investors.  The class alleged that the NASDAQ market-makers set and maintained wide spreads pursuant to an industry-wide conspiracy in one of the largest and most important antitrust cases in recent history.  After more than three years of intense litigation, the case settled for a total of $1.027 billion, one of the largest antitrust settlements at that time.
  • In re Washington Public Power Supply System Securities Litigation, MDL No. 551 (D. Ariz.), was a massive securities fraud litigation in which Milberg served as co-lead counsel for a class that obtained settlements totaling $775 million, the largest-ever securities fraud settlement at that time, after several months of trial.
  • In re Exxon Valdez, No. 89-095 (D. Alaska.) and In re Exxon Valdez Oil Spill Litigation, 3 AN-89-2533 (Ak. Sup. Ct. 3d Jud. Dist.). Milberg was a member of the Plaintiffs’ Coordinating Committee and co-chair of the Plaintiffs’ Law Committee in the massive litigation resulting from the Exxon Valdez oil spill in Alaska in March 1989. Plaintiffs obtained a jury verdict of $5 billion, which, after years of appeals by Exxon, was reduced to approximately $500 million by the United States Supreme Court. Recently, the United States Court of Appeals for the Ninth Circuit held that plaintiffs are entitled to post-judgment interest on the award in the amount of approximately $470 million.
  • In re Managed Care Litigation, MDL No. 1334 (S.D. Fla.).  Final approval of a settlement between a nationwide class of physicians and defendant CIGNA Healthcare, valued in excess of $500 million, was granted on April 22, 2004.  A similar settlement valued in excess of $400 million involving a nationwide class of physicians and Aetna was approved by the court on November 6, 2003.  The settlements stem from a series of lawsuits filed in both state and federal courts by physicians and medical associations against many of the nation’s largest health insurers arising from allegations that the insurers engaged in a fraudulent scheme to systematically obstruct, reduce, delay, and deny payments and reimbursements to health care providers.  These settlements brought sweeping changes to the health care industry and significant improvements to physician-related business practices.
  • In re Sunbeam Securities Litigation, No. 98-8258 (S.D. Fla).  Milberg acted as co-lead counsel for the class.  Plaintiffs alleged that Sunbeam, its auditor, and its management engaged in a massive accounting fraud that led to a restatement of over three years of previously reported financial results.  The court approved a combined settlement of more than $140 million, including a $110 million settlement with Arthur Andersen LLP, Sunbeam’s auditor.  At that time, the Andersen settlement was one of the largest amounts ever paid by a public accounting firm to settle federal securities claims.  The Settlement with the individual defendants was achieved on the eve of trial, and ended almost four years of litigation against Andersen and Sunbeam’s insiders, including Albert Dunlap, Sunbeam’s former Chairman and CEO.  The settlement included a personal contribution from Dunlap of $15 million.
  • In re Triton Energy Limited Securities Litigation, No. 98-256 (E.D. Tex.).  Plaintiffs alleged that defendants misrepresented, among other things, the nature, quality, classification, and quantity of Triton’s Southeast Asia oil and gas reserves during the period March 30, 1998, through July 17, 1998.  The case settled for $42 million.
  • In In re Thomas & Betts Securities Litigation, No. 00- 2127 (W.D. Tenn), the plaintiffs, represented by Milberg as co-lead counsel, alleged that Thomas & Betts engaged in a series of accounting improprieties while publicly representing that its financial statements were in compliance with GAAP, and failed to disclose known trends and uncertainties regarding its internal control system and computer and information systems.  The case settled for $46.5 million dollars in cash from the company and $4.65 million in cash from its outside auditor, KPMG.
  • In re MTC Electronic Technologies Shareholder Litigation, No. 93-0876 (E.D.N.Y.).  Plaintiffs alleged that defendants issued false and misleading statements concerning, among other things, purported joint venture agreements to establish telecommunications systems and manufacture telecommunications equipment in China.  The court approved a settlement of $70 million, including $65 million in cash and $5 million worth of MTC Class A shares with “put” rights.
  • In re PaineWebber Limited Partnerships Litigation, No. 94-8547 (S.D.N.Y.). Milberg represented investors alleging that PaineWebber developed, marketed, and operated numerous investment partnerships as part of an ongoing conspiracy to defraud investors and enrich itself through excessive fees and commissions over a 12-year period.  On March 20, 1997, Judge Sidney Stein approved a $200 million settlement, consisting of $125 million in cash and $75 million worth of guarantees and fee waivers.
  • Andrews v. AT&T, No. 91-175 (S.D. Ga.).  Milberg represented a class of persons who paid for premium-billed “900-number” calls that involved allegedly deceptive games of chance, starting in 1993.  Defendants included major long-distance companies, which approved the call programs and billed for the calls.  Defendant MCI settled for $60 million in benefits.  The class against AT&T was decertified on appeal and Milberg prosecuted the individual plaintiffs’ claims, obtaining a jury verdict in 2003 for compensatory and punitive damages.

In the context of shareholder derivative actions, Milberg has protected shareholder investments by effectuating important changes in corporate governance as part of the global settlement of such cases.  Cases in which such changes were made include:

  • In re Topps Co., Inc. Shareholder Litig., No. 600715/2007 (N.Y. Sup. Ct. N.Y. County Apr. 17, 2007).  Milberg served as co-lead counsel in this transactional case, which led to a 2007 decision vindicating the rights of shareholders under the rules of comity and the doctrine of forum non conveniens to pursue claims in the most relevant forum, regardless of the place of incorporation.  This case was settled in late 2007 in exchange for a number of valuable disclosures for the class.
  • In re Marketspan Corporate Shareholder Litigation, No. 98-15884 (N.Y. Sup. Ct.).  The settlement agreement in this derivative case provided for shareholder-friendly corporate governance changes, including changes to the audit committee and changes in compensation awards and to the nominating committee.
  • In re Trump Hotels Shareholder Derivative Litigation, No. 96-7820 (S.D.N.Y.).  In this case, the plaintiff shareholders asserted various derivative claims on behalf of the company against certain Trump entities and senior Trump executives in connection with the self-serving sale of a failing casino to the company in which the plaintiffs held stock.  Milberg negotiated a settlement on behalf of the plaintiffs that required Donald Trump to contribute a substantial portion of his personal interest in a pageant he co-owned.  In addition, the settlement required that the company increase the number of directors on its board, and that certain future transactions be reviewed by a special committee.