Are Investment Banks Exposed?
Investment banks also are being eyed by plaintiffs and their attorneys. A complaint filed in the U.S. District Court for the Southern District of New York by institutional investors listed several investment banks as defendants, including Bear Stearns & Co. Inc., Deutsche Banc Securities Inc., Piper Jaffray & Co., and Roth Capital Partners LLC (The Jay Peter Kaufman Revocable Trust v. New Century Financial Corp., C.D. Cal, No. 8:07-cv-00585, filed 5/22/07). Underwriters in the lawsuit are liable due to information contained in prospectuses and other offering documents, the complaint said. According to Silk, the untrue and misleading statements allegedly appeared in offering documents and prospectuses. Kreindler & Kreindler LLP partner Mark Labaton told BNA many of the securities fraud cases will likely be consolidated instead of allowing several suits alleging the same types of violations to be argued within the same jurisdiction. Five Types of Cases Seen Mayer Brown’s Spehr, a securit
