Notable Cases & Settlements

For over 45 years the firm has prosecuted and defended some of the most high profile cases in the country.  A few examples of successes in each practice area are below.

ANTITRUST

Freight Forwarders Antitrust Litigation
USDC, Eastern District of New York 
CPM is Co-Lead Counsel for Direct Purchasers of Freight Forwarding services in the United States and filed a complaint alleging that the major providers of Freight Forwarding conspired to fix the prices of such services in violation of U.S. federal antitrust law (15 U.S.C. § 1). CPM’s diligent efforts have already led to settlements with 10 Defendants for the benefit of the class.  CPM, along with co-counsel, have moved for Court approval for these 10 settlements which total a minimum of $105 million. For additional information regarding the current settling Defendants, description of the case and how a potential class member can make a claim, please follow this link:  https://www.freightforwardcase.com

International Air Transportation Surcharge Antitrust Litigation
USDC, Northern District of California
On October 3, 2008, Judge Charles R. Breyer of the Northern District of California gave final approval to settlements with Defendants Virgin Atlantic Airways, LTD and British Airways Plc worth approximately $204 million. The settlements resolve price-fixing claims of qualifying purchasers of long-haul air travel from Virgin Atlantic or British Airways, in both the United States and the United Kingdom under U.S. federal antitrust laws (1 U.S.C. §1) and the antitrust laws of the United Kingdom and European Union. Plaintiffs allege that the British Airways and Virgin Atlantic, which dominate the market for long-haul flights between the United States and United Kingdom and between the United Kingdom and other destinations, conspired to fix the fuel surcharges charged to passengers on such flights. Members of the settlement classes that submit claims will be refunded 33.3% of the fuel surcharges they paid on qualifying flights.

In re: Static Random Access Memory Litigation
USDC, Northern District of California
CPM secured $77 million in settlements in the Static Random Access Memory (“SRAM”) price-fixing case. The final settlement was reached hours before the trial was to begin. SRAM is a memory product used worldwide in computers, cell-phones and communications equipment. Important legal rulings were reached on cutting edge issues such as the extent to which the United States antitrust laws apply to foreign conduct, standing of class representatives and the proper showing for class certification.

E&J Gallo Winery v. EnCana Energy Services, et al.
USDC, Eastern District of California
CPM successfully represented E. & J. Gallo Winery in an antitrust action against natural gas companies for manipulating energy prices, which led to the 2000-2001 California energy crisis, in which energy companies not only gouged the State of California and its residents of billions of dollars but led to rolling blackouts throughout California.  E. & J. Gallo Winery is one of the largest natural gas users in the State of California and it suffered millions of dollars in losses.  CPM’s aggressive prosecution of this case resulted in the case settling on the eve of trial for a substantial sum.  CPM’s efforts led to the landmark Ninth Circuit opinion on the filed rate doctrine at E. & J. Gallo Winery v. EnCana Corporation, 503 F.3d 1027 (9th Cir. 2007)

Kopies, Inc. v. Eastman Kodak Co.
USDC, Northern District of California
CPM successfully prosecuted an antitrust class action on behalf of copier service firms against parts manufacturer for illegal tying of products and services. 

In re Dynamic Random Access Memory (DRAM) Antitrust Litigation
USDC, Northern District of California
CPM served as one of the class counsel in a multidistrict litigation arising from the price-fixing of DRAM, a form of computer memory. Shortly before the scheduled trial, class counsel reached settlements with the last remaining defendants, bringing the total value of the class settlements to over $325 million.

AVIATION

Alaska Airlines MDL No. 1343
USDC, Northern District Court of California
Representing victims of the crash of Alaska Airlines Flight 261 in January 2000 off the coast of Southern California.

Singapore Airlines MDL No. 1394 Thomas v. Singapore Airlines
USDC, Central District Court of California
Representing victims of the October 2000 crash of a Singapore Airlines passenger jet in Taiwan in which 83 people were killed and dozens injured.

Bell Helicopter Litigation
USDC, Northern District of Texas
This case involved pursuit of a claim for product liability in the design of the engine shroud incorporated into a Bell helicopter, which crashed in the jungle of New Guinea killing a Chevron executive. The suit was on behalf of the wife and children of the executive and against the helicopter manufacturer and the French company, which supplied the component parts.

PSA Flight 1771
Los Angeles County Superior Court 
Represented victims of the December 1989 air crash of a PSA jetliner near San Luis Obispo. The case was unique due to the focus on breaches of security by the airline and airport security, which permitted a disgruntled former airline employee to by-pass security with a gun later used to kill the pilot and crew during flight.

COMMERCIAL LITIGATION

Universal Paragon Corporation v. Ingersoll-Rand Company
USDC, Northern District of California
CPM represented a property developer in litigation relating to a decades-long dispute over DNAPL (Dense Non-Aqueous Phase Liquid) contamination caused by solvents from a lock factory owned by the Schlage Lock Company, before it was acquired  by Ingersoll-Rand.  The Visitacion Valley property, which was the subject of the litigation, is some of the most valuable and underdeveloped property in the Bay Area but the contamination and litigation prevented any serious effort to develop this property.  CPM’s litigation strategy resulted in a successful resolution of the litigation, creating an opportunity to develop Visitacion Valley into a commercial center in the Bay Area.  The California Court of Appeal described CPM as an “experienced litigation firm that obtained a ‘stupendous’ result for the [client].”

Siller v. Siller Brothers, Inc.
Sutter County Superior Court
The firm successfully represented a minority shareholder in a dissolution proceeding and trial establishing a value for his corporate interest at more than double that of the court appointed appraisers.

Plan Trust of Touch America v. Goldman Sachs and Milbank Tweed
USDC, District Court of Montana
CPM successfully represented the Plan Trust of Touch America in litigation against Goldman Sachs and Milbank Tweed arising out of the collapse of Montana Power Company.  The firm reached settlements of $47 million with Goldman and Milbank for the bankruptcy estate, and participated in global mediation efforts which resulted in settlements, exceeding $100 million for other victims including, shareholders and employees.  

Olympus v. Taisei Construction
Santa Clara County Superior Court
The firm successfully represented the owner of the prestigious Calistoga Ranch Resort in an action for fraudulent overbilling against Taisei Construction.

Union Bank / Ernst & Young ~ Professional Negligence (Orange County)

Tax Shelter Litigation
CPM represented individuals who were convinced by accounting firms including, KPMG, Ernst & Young and BDO Seidman, to invest in what was represented would legally reduce the investor's tax liability, but were in actuality abusive tax shelters.  CPM reached confidential settlements on behalf of its clients.

Holmes v. Lerner
San Francisco County Superior Court
CPM successfully represented Patricia Holmes in a breach of contract case against Sandra Lerner, co-founder of Cisco, arising out of the creation of Urban Decay, a cosmetics company.  The jury verdict against Lerner was affirmed on appeal.  Holmes v. Lerner (1999) 74 Cal. App.4th 442

CONSUMER PROTECTION

HL Leasing Ponzi Scheme
Fresno County Superior Court
CPM obtained a jury verdict for $46.5 million against the top two senior officers of HL Leasing, Inc. for their involvement in a Ponzi scheme. The jury verdict came three days after the court had entered a directed verdict for $114 million against HL Leasing, Inc., Heritage Pacific Leasing and Air Fred, LLC for a Ponzi scheme in which over 1200 victims lost approximately $137 million. (Jury Verdict 2011)

Isuzu Motors Ltd. v. Consumers Union of the United States, Inc. 
USDC, Central District of California 
CPM represented defendant publisher of Consumer Reports in defamation/product disparagement litigation brought by auto manufacturer against non-profit consumer testing organization. Jury verdict for Consumers Union after a two-month jury trial.

Citigroup
San Francisco County Superior Court
CPM filed a consolidated class action on behalf of mortgage "packing" and "flipping" victims.  Nationwide class certification for settlement purposes, and final approval of settlement ($240 million).

Household Lending
USDC, Northern District of California
CPM filed a nationwide class action on behalf of predatory lending victims.  The settlement returned tens of millions of dollars to consumers.

Ameriquest
San Mateo County Superior Court
CPM filed a "Bait and Switch" class action on behalf of mortgage borrowers.  After certification, the case settled for $50 million.

Fairbanks Capital Corp.
USDC, District of Massachusetts
CPM filed a nationwide class action against mortgage loan servicing company for charging various improper fees, costs and charges and was appointed co-lead class counsel by the federal court.  Class certification for settlement purposes and final approval of settlement ($40 million). 

Anastasiya Komarova v. MBNA America Bank, N.A.; National Credit Acceptance, Inc.
San Francisco County Superior Court
In a rare jury trial against a credit card collection agency, a San Francisco jury ruled in favor of a young woman who was the victim of an abusive campaign to force her to repay a debt she never incurred. Anne Marie Murphy and Justin T. Berger, who represented Anastasiya Komarova, obtained a verdict believed to be one of the largest verdicts in the country by a sole plaintiff alleging credit abuse.

Abat et al. v. Money Management International, Inc. and JP Morgan Chase
USDC, Central District of California
CPM successfully prosecuted a class action against Money Management International (“MMI”), which is one of the nation’s largest credit counseling agencies, as well as Chase.  The complaint alleged that MMI touted services aimed to help consumers drowning in debt when in reality, the company was set up to act as a ‘soft debt collector’ for the credit card industry, including for defendant Chase.  The case resolved after settlements were reached separately with each defendant, resulting in a recovery of more than $10 million.  Both settlements were approved by the court and settlement funds have been distributed to consumers.

DEFECTIVE PRODUCTS

Toyota Litigation 
USDC, Central District of California
CPM is Co-Lead counsel in a class action against Toyota Motor Corporation and its U.S. sales and marketing arms, Toyota Motor Sales, U.S.A., Inc. and Toyota Motor North America, Inc.  United States District Judge James V. Selna appointed Frank M. Pitre as Co-Lead Counsel for the economic loss committee in the Toyota lawsuits.  The MDL involves more than 200 lawsuits divided into two groups: those seeking losses on behalf of consumers and others who have lost value on their Toyotas, and those seeking damages for people who have been injured or killed in a Toyota vehicle.

ELDER ABUSE

Pauline Gogol v. Mills-Peninsula Health Services d/b/a Mills-Peninsula Skilled Nursing
San Mateo County Superior Court
In July 2012, Cotchett, Pitre & McCarthy won a $1,844,400 jury verdict after a two week trial on behalf of an 86 year old resident of San Mateo County who was injured in a nursing home.  The jury also made a finding of clear and convincing evidence of recklessness, oppression, fraud or malice.  The case settled before the punitive damage phase.

Pauline B. Reade v. Fetuu Tupofutuna, et al.
San Mateo County Superior Court
CPM and The Legal Aid Society of San Mateo County provided pro bono representation to a 89 year old elderly widow, Pauline Reade, who was bilked out of nearly $600,000.  Ms. Reade faced foreclosure on her Pacifica home after Fetuu Tupoufutuna, a scam contractor, tricked her into signing loan documents in the sum of hundreds of thousands of dollars with various banks and mortgage entities.  The action was filed to stop the sale against various individuals and entities involved in the loan transaction, including, RBS Financial, Products, Inc., Deutsche Bank National Trust Co., GMAC Mortgage, LLC, Mortgage Electronic Registration Systems, Inc. Executive Trustee Services, Paul Financial, Fetuu Tupoufutuna and Mohammed Ali George.

EMPLOYMENT LAW

Los Angeles Times / Zell
USDC, Northern District of Illinois
CPM sucessfully represented current and former journalists of the Los Angeles Times in a lawsuit filed against Sam Zell, the Tribune Company and others for a breach of their fiduciary duties, violating ERISA, improper valuation and misuse of employee pension fund assets and conflicts of interest. Other allegations included that Tribune Company employees, who technically own the company through the Tribune ESOP, had been damaged by the go-private transaction and by the subsequent mismanagement and self-dealings of Tribune executives, including Sam Zell, the result of which had been to diminish the value and the products of the employee-owned company.  CPM received final approval for a $32 million settlement for the employees' retirement plan.

In re: Wachovia Securities, LLC, Wage and Hour Litigation
USDC, Central District of California
CPM was designated co-Lead Plaintiffs’ Counsel by a federal judge in a collection of lawsuits against Wachovia Securities, LLC, on behalf of over 10,000 current and former stock brokers who were not paid in accordance with state and federal law.  The case settled for $39 million.

In re: AXA Wage and Hour Litigation
USDC, Northern District of California
CPM was appointed co-Lead Plaintiffs’ Counsel by a federal judge in a collection of lawsuits against the AXA family of insurance companies, on behalf of over 7,000 current and former financial sales representatives who were not paid in accordance with state and federal law.  The case settled for $6.5 million. 

ENVIRONMENTAL LITIGATION

Avila Beach Environmental Litigation
Poist v. Unocal Corporation
San Luis Obispo County Superior Court
CPM represented California Central Coast homeowners in an environmental toxic class action arising out of petroleum contamination and remediation efforts.  The firm secured settlements on behalf of its clients.

Cambria Community Services District/Chevron Litigation
San Luis Obispo County Superior Court
CPM represented Cambria Community Services District against Chevron for a leak which contaminated the town’s drinking water supplies with MTBE.  The firm was successful in securing a settlement for Cambria which permitted it to insure that alternate water sources were available for the community.

Santa Maria Valley Litigation
Santa Barbara County Superior Court
CPM represented homeowners and families living in Santa Maria, California, an old oil field which was the setting of the film There Will be Blood.  When production in the oil field tapered off, residential communities were constructed atop the old oil fields – and on top of the waste which the oil companies left behind.  The firm has been successful in providing remedies to these families, who have been able to leave behind their polluted homes and communities and restart their lives.

United States of America, ex rel. Maranto and Wilson v. Maxxam Inc. and Charles Hurwitz
CPM represented Plaintiffs in separate federal and state whistleblower actions.  These qui tam actions for violations of the False Claims Act were filed on behalf of the State of California and the United States of America against Maxxam Inc., Charles Hurwitz, The Pacific Lumber Company, Scotia Pacific Company LLC, and Salmon Creek LLC. The case was tried before the Honorable Claudia Wilkins in the United States District Court for the District of Northern California.  In the middle of Plaintiffs' case in chief, the case settled favorably of Plaintiffs.

Cosco Busan Oil Spill
Tarantino, et al. v. Hanjin Shipping Co., Ltd., et al.
San Francisco County Superior Court
Loretz, et al. v. Regal Stone, Ltd., et al.
USDC Northern District of California
CPM served as co-lead counsel for settlement and litigation classes of San Francisco Bay fishermen economically injured by the November 7, 2007 Cosco Busan oil spill.  The firm was successful in receiving settlements for San Francisco Bay Area fisherman.

FALSE CLAIMS / WHISTLEBLOWER

Quest Diagnostics Litigation
State of California ex rel. Hunter Laboratories v. Quest Diagnostics, Inc., et al. 
Sacramento County Superior Court 
CPM represented a whistleblower, Chris Riedel, who owns a lab company, Hunter Laboratories of Campbell, California.  The California Attorney General’s office joined the case in late 2008.  The lawsuit alleged that, despite state law requiring that California’s Medi-Cal program receive the lowest price for lab services, Quest Diagnostics, the largest lab in California, and LabCorp, the second largest, routinely billed California prices far above what it was charging others.  The case settled in 2011, recovering $301 million in taxpayer money from the lab defendants, including $241 million from Quest Diagnostics, Inc.  The $241 million settlement is the largest false claims act recovery in California history, and the largest single-state False Claims Act settlement ever in United States history. Related cases filed by CPM on behalf of the Commonwealth of Massachusetts and the State of Michigan are ongoing.

California ex rel. Richardson v. IREF
San Francisco Superior Court, Case No. 964656
CPM filed a Qui Tam California False Claims Act case against research foundation for failure to pay direct and overhead costs in clinical drug studies to its host university.  Defendants agreed to pay $25 million to settle the lawsuit that alleged dollars were being misused.  A UC-trained physiologist Dr. Charles Richardson, brought the lawsuit.

United States, et al. v. Kan-Di-Ki, LLC
USDC Central District of California
CPM represents two former employees of Diagnostic Laboratories, the largest provider of x-ray and laboratory services to skilled nursing facilities in Southern California, in a case under the federal and California False Claims Acts alleging that Diagnostic Laboratories systematically overbilled Medicare and Medi-Cal, and provided illegal kickbacks to induce the referral of Medicare and Medi-Cal business. The California Attorney General’s Office has intervened in the case. Trial is set for May 2013.

FIRST AMENDMENT DEFENSE

Sharper Image Corporation v. Consumers Union of United States
USDC Northern District of California
CPM successfully defended under California’s Anti-SLAPP statute of product disparagement claim brought by Sharper Image relating to reviews of Sharper Image’s Ionic Breeze air cleaner published in Consumer Reports.

Kendall-Jackson Winery v.  E.J. Gallo Winery
USDC, Northern District of California
9th Circuit Court of Appeals
CPM represented defendant in trade dress and unfair business practice litigation.  (Judgment and verdict for defendant after jury trial.)

Isuzu Motors Ltd. v. Consumers Union of the United States, Inc.
USDC, Central District of California 
CPM represented defendant publisher of Consumer Reports in defamation/product disparagement litigation brought by auto manufacturer against non-profit consumer testing organization. Jury verdict for Consumers Union after a two-month jury trial.

Suzuki Motor Corp. Japan v. Consumers Union of the United States, Inc.
USDC, Central District of California 
CPM represented defendant publisher of Consumer Reports in defamation/product disparagement litigation brought by auto manufacturer against nonprofit consumer testing organization.  Summary judgment in favor of defendants was granted in May, 2000.

In re Cable News Network and Time Magazine "Operation Tailwind" Litigation
Sheppard v. Cable News Network, Inc. 
USDC, Northern District of California 
CPM represented Vietnam veterans against Time and CNN who falsely reported to have committed war crimes in Laos.

INTELLECTUAL PROPERTY

Exigen Properties, Inc., et al. v. Genesys Telecommunications Laboratories, Inc.
San Mateo County Superior Court
CPM is prosecuting an action on behalf of Exigen Services and several of its affiliates.  The case centers on the misappropriation of Exigen's proprietary information and trade secrets, including application hosting technology.

Kendall-Jackson Winery v. E&J Gallo Winery
U.S. District Court, Northern District of California
CPM represented defendant in trade dress and unfair business practice litigation. (Judgment and verdict for defendant after jury trial.)

MP3.Com Copyright Cases
USDC, Southern District of New York
CPM filed multiple cases alleging that MP3.Com committed copyright infringement. Issues of infringement and damages.

2KDirect, Inc. v. AzoogleAds US, Inc., et al.
USDC, Central District of California 
CPM Represented a small start up technology company against an online advertising network in lawsuit alleging trade dress infringement, breach of contract, and misappropriation of technology used for serving banner advertisements across the internet.  The case settled favorably during the day before jury selection.

MUNICIPAL & PUBLIC ENTITY LITIGATION

National Gas Anti-Trust Cases
San Diego Superior Court
City of Los Angeles v. Reliant, et al.
County of Santa Clara v. Sempra, et al.
City and County of San Francisco v. Sempra, et al.
County of Alameda v. Sempra, et al.
County of San Diego v. Sempra, et al.
City of San Diego v. Sempra, et al.
County of San Mateo v. Sempra, et al.
UC Regents v. Reliant, et al.
Association of Bay Area Government v. Sempra, et al.
Sacramento Municipal Utilities District v. Sempra, et al.
School Project for Utility Rate Reduction v. Sempra, et al.
Nurseymen’s Exchange, Inc., v. Sempra, et al.
Owens-Brockway Glass Containers, Inc. v. Sempra, et al.
TAMCO Steel, et al. v. Dynegy, et al.
Antitrust litigation on behalf of eleven public entities and others for the reporting of false information by non-core natural gas retailers to published price indices to manipulate the natural gas market during the California energy crisis.  The case was venued in San Diego Superior Court before Judge Ronald S. Prager.  The last settlements were done in 2009 and overall settlement totaled approximately $124 Million.

City and County of San Francisco v. Cobra Solutions, Inc., et al.
San Francisco Superior Court
CPM successfully represented the City and County of San Francisco (“CCSF”) in a contract dispute with one of its former outside contractors, Cobra Solutions, Inc. (“Cobra”).  Cobra submitted bills to CCSF for work that was never performed by one of the subcontractors that the contractor was responsible for supervising.  CCSF was forced to bring a lawsuit against Cobra when Cobra refused to allow CCSF to conduct an audit.  Cobra responded by filing a $12 million counter-claim against CCSF.  After a three week jury trial, the jury found Cobra liable to CCSF and rejected Cobra’s $12 million counter-claim in its entirety.

California State Teachers’ Retirement System v. AOL Time Warner
Los Angeles County Superior Court
CPM represented shareholders in a securities action against AOL for misrepresenting its financials and artificially inflating its stock price. (Settled 2007)

California State Teachers’ Retirement System v. Qwest Communications
San Francisco County Superior Court
CPM represented CALSTRS in a securities action for losses in excess of $100 million. The complaint charges certain Qwest executives and directors, its accountants, and banks with violations of state securities laws and alleges that defendants made false and misleading statements about Qwest's financial condition. (Settled 2007).

In re: Washington Mutual, Inc. California Securities Litigation
USDC, Western District of Washington 
CPM recovered $4.5 million for the County of Monterey and the City of Ventura from Washington Mutual’s former directors and officers and auditor. Notably, this was the only action in the country that resulted in Washington Mutual Bank noteholders receiving compensation for the fraud.

PERSONAL INJURY

Lisa Seligman-Mazurek, et al. v. American Medical Response, et al.
San Diego County Superior Court
In 2009, plaintiff’s decedent, an orthopedic trauma surgeon for the United States Navy, rode his bicycle to work at the Naval Medical Center in San Diego.  While Plaintiff's decedent was traveling south on Murphy Canyon Road, a medical transport van operated by Defendant allegedly cut off Plaintiff's decedent.  As a result, Plaintiff's decedent struck the back and side of the van, causing him to slide under the rear right tire of the vehicle, which ran him over.  Plaintiff's decedent's surviving spouse and children sued American Medical Response Inc., Defendant's employer and claimed Defendant was negligent in operation of the vehicle, causing the accident and decedent’s wrongful death.  Plaintiffs were awarded $17.44 million by a jury.

Austin Hills, et al. v. S & G Ragsdale Equipment Co., LLC, et al.
Napa County Superior Court
CPM represented the Hills family in a product liability/negligence claim against the parties responsible for the defective operation of a truck/trailer hitch system which caused a 5 ton trailer with drilling equipment to disengage, then swerve into the opposing lane of traffic killing Erika Hills, a resident of Napa.

PHARMACEUTICAL LITIGATION

Bextra and Celebrex Marketing Sales Practices and Product Liability Litigation 
USDC, Northern District of California 
CPM was co-lead trial counsel in the In Re: Bextra and Celebrex Mktg., Sales Practices & Product Liability Litigation, which culminated in Pfizer agreeing to pay $894 million to settle consolidated injury and class action cases related to its pain killers Bextra & Celebrex.

Vioxx Product Liability Litigation 
USDC, Eastern District of Louisiana 
CPM successfully represented a number of individuals who suffered medical injuries such as heart attacks and strokes after taking the prescription drug Vioxx.  The drug was withdrawn from the market by its manufacturer and distributor, Merck & Co., Inc., after evidence emerged linking the drug to heart attacks, strokes, sudden cardiac death and other serious cardiovascular risks.

SECURITIES / INVESTOR / FINANCIAL FRAUD

American Continental Corp./Lincoln Sav. & Loan
794 F. Supp. 1424, UDSC, District Court of Arizona
CPM represented shareholder and bondholder victims of Charles Keating in a securities class action, and related insurance coverage litigation, including lengthy jury trial. (Largest jury verdict against an individual defendant in American history – $3.5 billion against Keating and others.)

California State Teachers’ Retirement System v. AOL Time Warner
Los Angeles County Superior Court – Case No. CGC-03-422609
CPM represented CalSTRS in a securities action against AOL Time Warner, its securities underwriters, its senior officers and directors and its auditor, Ernst & Young (“E&Y”) alleging violations of state and federal securities law. CalSTRS was able to recover $107.4 million in settlement, representing 80% of its losses and over 7 times what it would have recovered if it had remained a member of the Class.  Our firm’s participation in the CalSTRS/AOL Time Warner litigation was also at the cutting edge of California securities law development. We obtained a ruling from the Los Angeles Superior Court holding that the Supreme Court ruling in Dura Pharmaceuticals, Inc. v. Broudo, 544 U.S. 336 (2005) did not apply to actions brought under the California securities laws. We also were one of the first firms to litigate the issue of reliance as it relates to index investing, an issue of significant importance to all pension funds. This litigation demonstrates our firm’s commitment to fighting to ensure that federal and state securities laws are able to protect injured investors and preserve the integrity of America’s securities markets. (Settled 2007).

California State Teachers’ Retirement System v. Qwest Communications
San Francisco County Superior Court – Case No. 415546
CPM represented CalSTRS in a securities action against Qwest Communications International, Inc., its securities underwriters, its senior officers and directors, and its auditor, Arthur Andersen arising out of the fraud executed by Qwest’s senior officers. The litigation strategy resulted in a $46.5 million settlement for CalSTRS alone, compared to the entire $400 million class settlement. CalSTRS’ individual settlement is approximately 11.6% of the total class settlement. CalSTRS also recovered over 50% of its actual damages, compared to a 6% class recovery This is an exceptional settlement in a securities litigation and became the subject of securities panel discussions. (Settled 2007).

In re Homestore.com, Inc. Securities Litigation
USDC Central District of California
CPM was Lead Counsel in a securities fraud class action representing CalSTRS against Homestore.com, Inc., its senior officers and directors, its auditors, and other companies who engaged in  fraudulent "roundtripping" transactions, increasing revenues by false accounting methods.  CalSTRS and the class entered into settlements totaling over $100 million.  In 2011, CPM obtained a jury verdict against a Homestore executive for securities fraud. This trial was one of the few successful PSLRA (Private Security Litigation Reform Act) cases brought to trial since the Act's enactment in 1995. (Jury Verdict 2011).  

Worldcom
The Regents of the University of California v. Salomon Smith Barney, Inc.,et al.
USDC Southern District of New York - Case No. 03-6219, Master File No. 02-3288
CPM represented the Regents of the University of California in an individual securities action WorldCom, Inc., its underwriters and its officers and directors, including Bernard Ebbers, relating to a massive multibillion accounting fraud which resulted in the bankruptcy of one of the largest telecommunications companies in the United States. Regents had invested in WorldCom securities prior to the Class Period and would have recovered nothing from the settlement. This was one of the first cases to successfully bring a holder's claim under California's blue sky laws, as recognized by the California Supreme Court in Small v. Fritz (2003) 30 Cal.4th 167.  (Settled 2006).

Technical Equities Litigation
Abelson v. National Union
Santa Clara County Superior Court
CPM represented hundreds of individual plaintiffs in a fraud litigation, and subsequent insurance coverage and insurance bad faith litigation, and included three lengthy jury trials and three court trials. (Largest verdict in California for 1991).

Bily v. Arthur Young & Co.
3 Cal. 4th 370 (1992)
CPM represented shareholders in a professional negligence action against Arthur Young & Co. for materially misleading financial statements. Seminal case in California discussing auditor liability to shareholders.