Good Wins Update – December 2011
Goodwin Procter’s litigation attorneys have delivered key victories on a wide range of complex legal matters for clients including:
Goodwin Procter obtained complete dismissal of a putative class action alleging securities fraud and related claims against software-as-a-service (SaaS) company athenahealth and its senior management arising out of a revenue restatement. The complaint had alleged misstatements in violation of Sections 10(b) and 20(a) of the Securities Act of 1934, and sought damages for a class period of over two years.
In Allstate Insurance Co. v. Countrywide Financial Corp., Allstate and several affiliates sued over $740 million in Countrywide-issued mortgage backed securities (MBS), alleging violations of the federal Securities Exchange Act of 1934 and Securities Act of 1933 as well as fraud and negligence under state law. Originally filed in federal court in Manhattan, the Goodwin litigation team successfully moved to transfer the case to federal court in Los Angeles, where it is now part of the Countrywide MBS multidistrict litigation proceeding pending before U.S. District Judge Mariana Pfaelzer. The court in Allstate ruled that all of the federal claims and many of the state law claims were time-barred under applicable federal and state statutes of limitations and repose, dismissing them with prejudice.
The Goodwin team won affirmance by The Massachusetts Appeals Court of dismissal of a class action challenging the merger of Goodwin client Phase Forward with Oracle Corporation. A three-judge panel affirmed dismissal of breach of fiduciary duty claims against Phase Forward’s directors under Revlon and for alleged omissions from the proxy disclosures. The Appeals Court also affirmed dismissal of aiding and abetting claims against the entity defendants.
University of Phoenix/Apollo Group
A team of Goodwin securities litigators achieved a significant victory for Apollo Group, the operator of the University of Phoenix, when an Arizona federal judge dismissed a securities class action alleging that the company failed to disclose its use of improper recruiting practices which purportedly artificially inflated its growth, and engaged in improper accounting practices. The suit was criticized by Apollo for lacking even the basic requirements for alleging fraud.
Goodwin’s litigation practice handles a wide range of matters including consumer financial services, IP, products liability and mass torts, white collar defense, securities litigation, commercial litigation, labor and employment, ERISA litigation and antitrust. Check the Goodwin website for regular updates on significant client litigation victories.