Sirota & Sirota LLP filed the very first case exposing the collusive “laddering” of IPOs by the largest investment banking firms in the United States, Billing v. Credit Suisse First Boston Ltd., 287 F.Supp.2d 497, rev’d 426 F.3d 130 (2d Cir. 2005), petition for certiorari pending in the United States Supreme Court, No. 05-1157, April 12, 2006, now named In re IPO Antitrust Litigation. In that case, the firm is a member of the Plaintiffs’ Executive Committee, as well as the Executive Committee of In re IPO Securities Litigation. Judge Sheindlin’s numerous reported decisions in that pending action include 241 F.Supp.2d 281 (S.D.N.Y. 2003)(motions to dismiss consolidated class actions alleging manipulation and non-disclosure denied in substantial part and granted in part); 227 F.R.D. 65 (S.D.N.Y. 2004)(motion for class certification of focus cases granted); and 226 F.R.D. 186 (S.D.N.Y. 2005)(settlement with issuer defendants guaranteeing minimum $1 billion payment preliminarily approved). Defendants’ appeal of grant of class certification, Miles v. Merrill Lynch, 04-8026 (2d Cir. June 30, 2005), has been briefed and argued.
The firm is Lead Counsel or Co-Lead Counsel in a number of pending class actions on behalf of bondholders of defaulted bonds issued by the Republic of Argentina.
The firm has acted as counsel for numerous issuers and underwriters in a variety
of small private placements and public offerings.
The firm has acted as counsel for numerous broker-dealers and registered persons
in matters before the S.E.C., NASD and state agencies. The firm has acted as
counsel to raiders in takeover contests and dissident groups in proxy fights.
The firm has prosecuted or defended many securities arbitrations and litigations,
principally in the federal courts and S.E.C. or NASD proceedings, as more fully
described below.
The firm's defense practice has included many high-profile civil cases representing
defendants prosecuted by federal or state agencies or sued by investors, including
Brown, Knapp & Co., F.D. Roberts, Haas Securities, Multi-Vest Securities, G.K.
Scott and others. See Grunwald v. Borenfreund, 668 F.Supp. 128 (E.D.N.Y. 1987),
Wiley v. Hughes Capital Corp., 746 F.Supp. 1264 (D.N.J. 1990); In the Matter
of G.K. Scott, S.E.C. Release No. 33485, 1994 LEXIS 155 (January 14, 1994),
Crossen v. Bernstein, Fed.Sec.L.Rep. ¶ 98,329 [1994 Transfer Binder] (S.D.N.Y.
1994), S.E.C. v. Lorin, 877 F.Supp. 192 (S.D.N.Y. 1995); Carr v. Equistar Offshore
Ltd., Fed.Sec.L.Rep. ¶ 98,932 (S.D.N.Y. 1995). Sierra Rutile Limited v.
Katz, 1995 U.S. Dist. LEXIS 15675 (S.D.N.Y. 1995); S.E.C. v. Atratech, 1996
U.S. Dist. LEXIS 857 (S.D.N.Y. 1996). The firm successfully defended the defendants
in a $50 million RICO action, Sellinger, et al. v. Blum, et al., in the District
of New Jersey. See Civil No. 91-02165 (D.N.J. Sept. 13, 1991), affirmed, 1992
U.S. App. LEXIS 28945 (3d Cir. 1992). See also Springfield Oil Services Inc.
v. Mermelstein, 1996 U.S. Dist. LEXIS 367 (N.D. Ill. 1996), and 1995 U.S. Dist.
LEXIS 14987, (N.D. Ill. 1995). The firm has defended a number of securities
class and derivative litigations, including the MTC Electronics, Jennifer Convertible,
and Conquest Industries actions.
The firm has been lead counsel representing defrauded investors in many securities class actions, including actions obtaining redress for some of the most notorious frauds of the past decade.
The firm was Chairman of the Executive Committee in In re Crazy Eddie Securities
Litigation in the Eastern District of New York, one of the most widely cited
and notorious securities frauds in recent times. The firm negotiated a $42 million
partial settlement and negotiated a $51 million payment to the Class from the
funds of Eddie Antar, for a total Class recovery of $93 million with additional
payments expected in the future. The firm contributed to the efforts of the
U.S. government to apprehend fugitive financier Eddie Antar and locate Antar's
funds. For his efforts in assisting the U.S. Marshall's Service, Howard Sirota
received an award "... for extraordinary assistance provided during the fugitive
investigation for Eddie Antar, resulting in his arrest at 3:00 A.M. E.S.T. on
June 24, 1992 in Yavne, Israel." U.S. District Judge Eugene H. Nickerson, in
approving the $42 million partial settlement, observed that plaintiffs' counsel
displayed "sustained and admirable tenacity." 824 F.Supp. at 326. Judge Nickerson's
numerous reported decisions in In re Crazy Eddie Securities Litigation may be
found at 824 F.Supp. 320 (E.D.N.Y. 1993); 817 F.Supp. 306 (E.D.N.Y. 1993); 812
F.Supp. 33 (E.D.N.Y. 1993); 802 F.Supp. 804 (E.D.N.Y. 1992); 792 F.Supp. 197
(E.D.N.Y. 1992); 135 F.R.D. 39 (E.D.N.Y. 1991); 747 F.Supp. 850 (E.D.N.Y. 1990);
740 F.Supp. 149 (E.D.N.Y. 1990); 714 F.Supp. 1285 (E.D.N.Y. 1989); Fed.Sec.L.Rep.
¶ 94,507 [1989 Transfer Binder] (E.D.N.Y. May 15, 1989); and Bernstein
v. Crazy Eddie, Inc., 702 F.Supp. 962 (E.D.N.Y. 1988). See also In Re Crazy
Eddie Securities Litigation, 906 F.Supp. 840 (E.D.N.Y. 1995).
The firm filed the very first Complaint in In Re Wedtech Securities Litigation in the Southern District of New York, and served as one of four members of the Plaintiffs' Executive Committee. As was the case in Crazy Eddie, the notorious Wedtech fraud produced numerous criminal convictions as well as a $52.5 million settlement of the securities and RICO class action claims.
The firm served as a member of the Plaintiffs' Executive Committee in In Re Structural Dynamics Research Corporation, which was settled in the District of Ohio for $37.5 million.
The firm was one of three firms which prosecuted and obtained a $34 million settlement in the In Re Mobile Communications Corporation of America class action in Delaware Chancery Court, 1991 Del. Ch. Lexis 4 (Del. Ch. 1991). See Fed.Sec.L.Rep. ¶ 96,558 [1991 Transfer Binder] (Del.Ch. 1991) and Sandler Associates L.P. v. Bellsouth, Fed.Sec.L.Rep. ¶ 97,640 [1993 Transfer Binder] (D. Del. 1993).
The firm was Co-Lead counsel in In Re Gitano Group Securities Litigation in the Eastern District of New York, which was consolidated in the Southern District of New York and settled for $13.8 million.
The firm was Co-Lead counsel in In Re Home Owners Savings Bank Securities Litigation in the District of Massachusetts, which was settled for $12.5 million.
The firm was Co-Lead counsel in In Re Sahlen & Associates Securities Litigation, in the Southern District of Florida, in which the firm negotiated a $7.8 million settlement. As in Crazy Eddie and Wedtech, the principal officers of Sahlen were indicted and convicted of criminal RICO charges. In addition, the U.S. Securities & Exchange Commission instituted Rule 2(e) disciplinary proceedings against two former partners and the former audit manager for Sahlen's outside auditors, charging them with violations of generally accepted accounting and auditing standards. See S.E.C. AAER-550 Fed.Sec.L.Rep. ¶ 74,010 [1994 Transfer Binder]. See In Re Sahlen & Associates Inc. Securities Litigation, 773 F.Supp. 342 (S.D. Fla. 1991). See also Fed.Sec.L.Rep. ¶ 95,822 [1990-91 Transfer Binder] (S.D. Fla. 1990).
The firm was Lead Counsel in Cohen v. Apache in the Southern District of New York, in which the firm obtained a $6.75 million settlement for class members.
The firm was Co-Lead Counsel in the C.J.I. class action in Delaware Chancery Court which was settled for $4.2 million.
The firm was Lead Counsel in In Re Home Shopping Network Securities Litigation II, in the Middle District of Florida, in which the firm obtained a $4.1 million settlement.
The firm has also prosecuted and/or settled numerous other securities and RICO class actions, including but not limited to the Fort Howard seller class action in the Southern District of New York; the Inflight action denominated Cosmas v. Hassett, 886 F.2d 8 (2d Cir. 1989); the Ezcony action in the Southern District of Florida; Rocky Mount Undergarment Litigation, in the District of North Carolina, and the Delaware Chancery Court actions challenging proposed takeovers in Berkline, MBS Textbook and Kearney National, among others.
The firm has been involved in numerous reported securities and RICO decisions. Howard B. Sirota represented the NASD in its prosecution of First Jersey Securities. See First Jersey Securities v. Bergen, 605 F.2d 690 (3d Cir. 1979), cert. denied, 100 S.Ct. 1020 (1979) for a description of the prosecution of First Jersey Securities. The firm obtained one of the very few temporary restraining orders ever issued prohibiting a prosecution of a securities broker by a self-regulatory agency. See Bruan Gordon v. Hellmers, 502 F.Supp. 897 (S.D.N.Y. 1980), vacated on rehearing, Fed.Sec.L.Rep. ¶ 97,668 [1980 Transfer Binder] (S.D.N.Y. 1980).
The firm successfully defended Travers J. Bell, Jr., the raider in the takeover contest over what was then the largest black bank in the United States. Freedom National Bank v. Daniels & Bell, 528 F.Supp. 680 (S.D.N.Y. 1981). See also Golar v. Daniels & Bell, 533 F.Supp. 1021 (S.D.N.Y. 1982).
The firm has frequently been involved in cases that illuminated or made law in the securities area, including some on the losing side. Levine v. NL Industries, 926 F.2d 199 (2d Cir. 1991), although unsuccessful due to its unique fact pattern, was the first judicial decision to hold that the failure to disclose material environmental violations is a violation of SEC Rule 10b-5. Levine was one of the first decisions construing Ceres Partners v. GEL Associates, 918 F.2d 349 (2d Cir. 1990), which abandoned the practice in the Second Circuit of applying analogous state statutes of limitations to actions brought under Section 10(b) of the Securities and Exchange Act of 1934.
The firm won a leading decision regarding pleading securities fraud under F.R.Civ.P. 9(b). Cosmas v. Hassett, 886 F.2d 8 (2d Cir. 1989).
The firm has been involved in numerous other reported decisions interpreting the federal securities laws and RICO, including In Re Checkers Securities Litigation, 858 F.Supp. 1168 (M.D. Fla. 1994); In re Cedar Hill Cemetery Litigation, 853 F.Supp. 706 (S.D.N.Y. 1994); Ballan v. Wilfred American Educational Corporation, 720 F.Supp. 241 (E.D.N.Y. 1989); Bruan v. Lipuma, Fed. Sec. L. Rep. ¶ 95,612 [1990-91 Transfer Binder]; and Utz v. Correa, 631 F.Supp. 592 (S.D.N.Y. 1986). The firm has also had a reported decision interpreting New York Real Property Law in Rahabi v. Morrison, 81 A.D.2d 434, 440 N.Y.S.2d 941 (2nd Dept. 1981).
Sirota & Sirota LLP consists of the following attorneys:
Howard B. Sirota is a graduate of Brooklyn College of the City University of New York (B.A. 1971) and Brooklyn Law School (J.D. 1978). A former junior securities analyst for Cowen & Co. and Furman Selz, he was an enforcement staff attorney for the National Association of Securities Dealers (NASD), the regulatory body for the over-the-counter market, from 1978 to 1980 when he entered the private practice of law. Mr. Sirota is admitted to practice in the United States Supreme Court, the Court of Appeals for the Second Circuit, the four Federal District Courts in New York, and in the State of New York. Mr. Sirota has tried numerous cases in federal and state courts, as well as numerous arbitrations and administrative hearings.
He is a Founder of K'hal Bais Yitzchak in Brooklyn, NY, a member of the Board of Trustees of Temple Beth-El of Rockaway Park in Queens, NY, an advisor to the New York Cued Speech Association, and a Trustee of the Philip & Sarah Cohen Fund.
Rachell Sirota is a graduate of Brooklyn College of the City University of New York (B.A. cum laude 1970, M.A. 1972) and Brooklyn Law School (J.D. cum laude 1978). She was a trial attorney for the Corporation Counsel of the City of New York, where she received the Municipal Attorney of the Year Award by the Association of the Bar of the City of New York, prior to serving as law secretary to Supreme Court Justice Betty Weinberg Ellerin, Deputy Administrative Judge for the Courts in the City of New York, presently sitting on the Appellate Division, First Department. Ms. Sirota is admitted to practice in the Federal District Courts for the Southern and Eastern Districts of New York and in the State of New York. Ms. Sirota has extensive civil trial experience in state and federal courts.
She is a member of the Board of Directors of Dartmouth Hillel Association.
Saul Roffe is a graduate of Brooklyn College of the City University of New York (B.A. 1979, M.S. 1982) and New York Law School (J.D. 1988). He has worked for Howard B. Sirota, P.C., Rabin & Sirota and Sirota & Sirota since 1984 and is admitted to practice in the Federal District Courts for the Southern and Eastern Districts of New York, the District of New Jersey, and the States of New York and New Jersey. Mr. Roffe drafted the successful brief in Cosmas v. Hassett, 886 F.2d 8 (2d Cir. 1989).
John P. Smyth is a graduate of Long Island University, C.W. Post Center (B.A. 1985) and St. John's University, School of Law (J.D. 1999). Mr. Smyth began his career in the Securities industry at Dean Witter Reynolds, Inc., and Smith Barney Inc., prior to becoming Chief of Staff for Congressman Thomas J. Manton's district office in New York. Mr. Smyth attended St. John's University's, School of Law while working full time as a New York City Firefighter stationed at Ladder 18 on New York's Lower East Side. Upon completing his law studies, Mr. Smyth joined the National Association of Securities Dealers Regulation Inc., Member Regulation department in New York's District 10. Mr. Smyth serves on The Association of the Bar of the City of New York's, Banking Law Committee and is admitted to practice in the Federal District Courts for the Southern and Eastern Districts of New York and in the State of New York.
Halona N. Patrick is a graduate of New York University (B.S. 1993), Columbia
University (M.S. 1994) and the City University of New York School of Law at
Queens College (J.D. 1999). Before law school, Ms. Patrick was a Forensic
Social Worker with Morningside Heights Legal Services and Legal Aid Society's
Juvenile Rights Division. Upon graduation from law school, she joined the
litigation department of Dewey Ballantine LLP, concentrating her practice in
federal Antitrust Law. Ms. Patrick joined Sirota & Sirota in January of 2002.
She is admitted to practice in the Federal District Courts for the Southern
and Eastern Districts of New York and in the State of New York.
