Shareholder Merger Litigation
Faruqi & Faruqi, LLP places special emphasis on prosecuting shareholder class actions brought nationwide against officers, directors and other parties responsible for corporate wrongdoing. Most of these cases are based upon state statutory or common law principles involving fiduciary duties owed to investors by corporate insiders.

Merger claims often arise in the context of management-led buyouts, tender offers, “going private” transactions, and other acquisition activity. As part of Faruqi & Faruqi, LLP’s commitment to investors, the lawyers at the firm seek to protect shareholders by ensuring that corporate insiders comply with their fiduciary obligations, which include among other things, the duty to provide a fair price in any corporate transaction, a sale process not flawed in any material respect or skewed in favor of corporate insiders who may suffer from conflicts of interest, and full and complete disclosure of all information material to an investor’s decision to vote in favor of the corporate transaction, or seek appraisal.

The firm has been responsible for the restructuring of hundreds of transactions on terms more favorable to shareholders. Prior litigation commenced by Faruqi & Faruqi, LLP on behalf of its investor clients has obtained significant monetary and therapeutic recoveries, including millions of dollars in increased merger consideration for public shareholders; additional disclosure of significant material information so that shareholders can intelligently gauge the fairness of the terms of proposed transactions and other types of therapeutic relief designed to increase competitive bids and protect shareholder value.

Shareholder Derivative Litigation
Faruqi & Faruqi, LLP has extensive experience litigating shareholder derivative actions on behalf of the corporate entity. These actions are filed by a shareholder of a public company, but on behalf of the injured corporation, with any ultimate recovery flowing to the corporate entity, not its shareholders. This litigation is often necessary when the corporation has been injured, such as the wrongdoing by certain corporate officers in connection with stock-option backdating programs. A shareholder has the right to commence a derivative action when the company’s directors are unwilling, or unable, to pursue claims against the wrongdoers.

Derivative litigation, like shareholder merger litigation, usually asserts that corporate officers and/or directors breached fiduciary duties owed to the company. Because such wrongdoing is often the result of poor internal guidelines and procedures, Faruqi & Faruqi, LLP attempts to structure comprehensive corporate governance changes in connection with the successful resolution of derivative litigation, in addition to any monetary recovery that may inure directly to the benefit of the company, and indirectly to its shareholders through an improved market price and market perception.

Faruqi & Faruqi, LLP prosecutes these derivative actions on a contingent fee basis.

Securities Litigation
Since its inception over a decade ago, Faruqi & Faruqi, LLP has devoted a substantial portion of its practice to class action securities fraud litigation. The attorneys at the firm have extensive experience in the laws that regulate the securities markets and corporate disclosure obligations. The federal securities laws and class action mechanism provide a means for investors to recover losses due to fraud.

The federal securities laws were enacted to promote honesty and integrity in the securities markets, and the laws permit investors to seek redress in situations when a corporation, acting through its officers, directors, underwriters, auditors and/or accountants, fails to meet its obligations of full and fair disclosure to investors and the market. Class action securities fraud cases can result from many different types of fraud or misconduct, including corporate misstatements regarding a company’s key metrics or products and improper accounting manipulations which lead to the artificial inflation of the trading price of the company’s securities, until the corporate wrongdoing is disclosed. The well-publicized debacles involving Enron Corporation and WorldCom highlight the fact that corporate fraud still exists, despite the reporting requirements contained in the federal securities laws and oversight by the Securities and Exchange Commission.

Not all negative corporate events constitute a violation of the federal securities laws. However, when a potential for corporate liability involving violations of the securities laws arises, the lawyers at Faruqi & Faruqi, LLP have the experience and zeal to effectively assess and prosecute class action claims against the wrongdoers. If the lawyers at Faruqi & Faruqi, LLP determine that an adequate basis exists to allege a securities fraud claim, the firm advises the client that a class action claim is recommended. The class action vehicle provides court access to investors who might not otherwise file litigation, due to the sometimes prohibitive cost of complex litigation. Moreover, Faruqi & Faruqi, LLP prosecutes these cases on a contingent fee basis, which means that the individual commencing suit is not responsible for the payment of attorney’s fees, which are only paid if a successful result is obtained, subject to Court approval.

Portfolio Monitoring Program
Faruqi & Faruqi, LLP provides confidential, no cost portfolio monitoring services for individuals who are invested in the securities markets, as well as institutional shareholders. The firm’s portfolio monitoring program provides investors with the information prior to or at the onset of potential securities fraud litigation so that investors may assess the impact of negative news on the assets in their portfolio.

As part of this service, securities in the portfolio that may be affected by corporate wrongdoing or fraud can be evaluated by the firm’s qualified securities team. Each situation is assessed on the merits after careful research into both the facts and applicable legal principles.

As part of this service, Faruqi & Faruqi, LLP reviews on a regular basis any potential losses in a client’s portfolio attributable to negative corporate events. If there is a potential for securities fraud violations, the firm analyzes the merits of any such claim, including the extent of damages on an individual and class-wide basis. The firm’s legal team then provides the client with a salient synopsis of the results of their investigation, and renders a recommendation on whether litigation is the appropriate course of action, in light of all relevant information.

As an adjunct to the portfolio-monitoring program, Faruqi & Faruqi, LLP stands ready to provide litigation services to the client, if so requested.

Consumer and Antitrust Litigation
The attorneys at Faruqi & Faruqi, LLP represent consumers in a variety of state and federal complex class action consumer cases. Faruqi & Faruqi, LLP has been appointed as lead or co-lead counsel in many actions that directly impact you, as a consumer, in claims brought against "Goliath" industries, including claims against the largest cellular telephone providers, certain pharmaceutical companies, as well as large insurance companies.

Some of Faruqi & Faruqi, LLP's consumer cases include: In re Wireless Telephone 911 Class Litigation, No. 03-CV-2597 (N.D. Ill.) (consumer case alleging industry non-compliance with FCC rules); Potter v. Sharper Image Corp., No. CGC-03426350 (Cal. Sup. Ct.) (asserting class claims alleging unfair and deceptive trade practices).

Faruqi & Faruqi, LLP also prosecutes antitrust class action lawsuits pursuant to state and federal antitrust laws. These actions are commenced by individuals or businesses who have been injured by the anti-competitive conduct of competitors or providers with whom the plaintiff engages in business. Common examples of antitrust violations include price fixing, monopolization and price discrimination.

Faruqi & Faruqi, LLP, utilizing the class action mechanism, attempts to redress injuries sustained as a result of anticompetitive practices, and currently represents clients in In re Wireless Telephones Services Antitrust Litigation, No. 02 CV 2637 (S.D. N.Y.).

The firm prosecutes class action consumer and antitrust litigation on a contingent fee basis.