Practice Areas

Securities Fraud | Environmental Law | Mergers & Acquisitions | Consumer Fraud & Antitrust

Securities Fraud Litigation

In his letter to Berkshire Hathaway shareholders, Warren Buffett said ". . . there is no shortage of egregious conduct . . . in corporate America. . .[T]hese business leaders view shareholders as patsies, not partners." Many portfolio managers, viewing their performance statistics, are feeling the same way. They and their investors have been left "holding the bag" while company management - and the bankers, lawyers and accountants who assist them - walk away with millions.

Many institutional investors are now taking legal action, not only because of their fiduciary responsibilities to investors, but also to obtain meaningful financial recovery. The ownership of securities that were the object of fraud or manipulation gives the investor a hidden residual value - a claim against those who perpetrated the fraud. This claim represents real and quantifiable worth - dollars to the portfolio and incremental performance improvement to the portfolio manager.

And importantly for investment professionals, this type of litigation can force real change in corporate governance practices. Changes that will require management to act in the shareholders' interests (rather than their own), that will demand independent oversight from directors, that will rein in executive compensation - benefiting investors well into the future.

Federal securities laws have been on the books in the United States since the early 1930s, when Congress enacted legislation to protect investors from the type of fraud that accompanied the great stock market crash of 1929. These laws are intended to protect shareholders from losses suffered as a result of fraud on the part of public companies, their officers and directors, underwriters, auditors, and accountants. Securities class actions can involve many different types of fraud or misconduct, from corporate misstatements regarding a company's revenues, profits, or financial status, to improper accounting manipulations that serve to artificially inflate the price of a company's stock. When the fraud is uncovered, the stock price often plummets, causing investors to lose money. The federal securities laws provide a means for investors to recover some or all of their losses when the losses are due to fraud.For the investor whose portfolio has suffered due to the malfeasance of corporate management, the expense of a protracted lawsuit involving hundreds of hours of legal time and an uncertain outcome is not a viable option.

Carney Williams addresses this issue by working on a contingent-fee basis - legal fees and expenses are paid only from the ultimate settlement received. The investor maintains a high degree of influence on the course of the litigation, while actual demands on the client's time are minimized.

Environmental Law

The quest for economic progress sometimes results in damage to the environment, private property and human health. Our goal is to see that such damage and injury, whether caused by greed, negligence, or poor science, is identified, curtailed, and remediated, and that our clients are protected and justly compensated. At Carney Williams we recognize that our work in this area is about more than earning a living. Our present and future quality of life depends upon proper stewardship of our environment and natural resources.

Environmental litigation requires experience not only in the courtroom, but also in the complex web of environmental regulations and the governmental agencies that implement them, familiarity with the technical sciences, and the resources to sustain protracted battles against large corporations. We have assembled an experienced and dedicated environmental litigation team, lead by Hank Bates that specializes in complex environmental problems. Our lawyers and staff have significant experience in the areas of groundwater pollution, crop damage and personal injury due to misapplied or defective pesticides, leaking underground storage tanks, air pollution, industrial pollution, oil field contamination, and toxic exposures.

At Carney Williams we seek not only to gain full and just monetary compensation for our clients but also to ensure that the pollution is cleaned up and the polluter complies with all applicable laws in the future. To that end, our attorneys have sought remediation of polluted areas, removal of defective pesticides from the commercial market, and pursued claims against federal and local governmental agencies to insure that they comply with federal and state environmental laws.

For more specific information about the primary areas upon which we focus, simply click on the related link:

Mergers & Acquisitions

Carney Williams has built a strong practice representing public shareholders of companies undergoing "change-of-control" transactions, including management- led leveraged buyouts, mergers, acquisitions, tender offers, or other going-private transactions. In connection with these corporate restructurings, shareholders are given either cash for their stock (meaning that the company has become a privately held company) or may receive stock in a new company in exchange for their existing shares.

Although corporate officers and directors are obligated as a matter of law to protect shareholder interests and to take steps to maximize shareholder value during these transactions, too often the officers and directors have conflicts of interest or otherwise fail to maximize the value or compensation available to shareholders.

Carney Williams seeks to protect shareholders by insuring that they receive maximum compensation for their shares and also by insuring that they receive all necessary information and disclosure concerning the transaction. The firm has been responsible for the restructuring of numerous transactions on terms more favorable for shareholders, and has recovered many millions of dollars in increased compensation for shareholders whose equity is acquired in change-of-control transactions.

Consumer Fraud & Antitrust

Carney Williams takes pride in its active representation of individuals and small businesses that have been harmed, physically or financially, as a result of consumer fraud or antitrust violations. The firm's consumer fraud/antitrust practice is broad, and has involved cases relating to:

DEFECTIVE PRODUCTS AND DANGEROUS DRUGS: Carney Williams has represented consumers who purchased products that are defective or dangerous, including defective pacemakers, adulterated food, and prescription drugs such as Fen-Phen, Baycol, Rezulin, Serzone, Meridia and Paxil.

FINANCIAL SERVICES: The firm has been involved in some of the nation's leading consumer cases against credit card companies as a result of improper interest rate calculations, and against insurance companies over deception in the sale of policies. Carney Williams also has represented classes of mortgage borrowers that have been charged improper or undisclosed fees in connection with their mortgage loans.

ANTITRUST: Carney Williams represents consumers and businesses that have been harmed by price fixing schemes or other unfair business practices. The firm has been involved in an antitrust case against one of the largest retail toy chains in the country with respect to their business practices, as well as representing consumers in price fixing claims against certain car dealerships and drug manufacturers.

INTERNET FRAUD AND PRIVACY ISSUES: Carney Williams has taken an active role in new, cutting edge cases involving technology and Internet privacy-related issues.

As with the firm's securities cases, all of Carney Williams' consumer and antitrust cases are handled on a contingent-fee basis - the firm is paid only if it is successful in obtaining relief for its clients.