In Thorpe v. Walter Investment Management Corp, 14-20880 (S.D. Fla, 2014), Plaintiffs represented by the Rosen Law Firm alleged that defendants, a real estate loan servicer and its officers, had misrepresented to investors that it maintained strict internal controls and the highest levels of oversight over its servicing protocols and procedures, and a high level of compliance with regulatory and legal requirements. In reality, its key subsidiary engaged in rampant violations of consumer financial laws, and was ultimately required to pay $48 million in restitution and $15 million in fines to the FTC and CFPB. The Rosen Law Firm pursued the case through two motions to dismiss and obtained class certification, participated in a mediation, and ultimately reached a settlement of $24 million.
The Rosen Law Firm ultimately reached a settlement of $24 million
This mediated settlement exceeded the mean percentage of estimated loss of recent class action settlements
In Keith Thomas, et al. v. Magnachip Semiconductor Corp., et al., 2016 BL 66704 (N. Dist. Cal. 2016) Plaintiffs represented by the Rosen Law Firm alleged that Magnachip, a semiconductor manufacturer, inflated its financial results through accounting manipulations and sham transactions. Over the two year course of the litigation Magnachip’s financial condition significantly deteriorated, jeopardizing the Company’s ability to pay a judgment or settlement, but also accelerating negotiations towards a settlement. With the likelihood that the Company would be unable to satisfy any judgment against it, and after months of discussions between the settling parties with the assistance of a mediator, the Rosen Law Firm secured a $23.5 million settlement, representing the vast majority of remaining insurance proceeds. While Lead Plaintiff and Plaintiffs’ Counsel believed their claims to be meritorious, continued litigation through trial - and likely appeals -carried considerable risks that made any recovery uncertain. In addition, the settling Defendants’ legal costs would have continued to drain the remaining insurance funds. In all, this mediated settlement was in the best interest of all Parties and was deemed to be a beneficial recovery for Plaintiffs as it exceeded the mean percentage of estimated loss of recent class action settlements.
In In re Galena Biopharma Inc., Sec. Litig., 117 F. Supp. 3d 1145, 1187 (D. Or. 2015), Plaintiffs represented by the Rosen Law Firm alleged that defendants, consisting of officers of a biopharmaceutical company, had hired a promotional firm to publish bullish articles about the company online, without disclosing that the articles were paid promotions, and sold their personally-held shares into the inflated stock price. A special committee formed by the Company concluded that Galena officers had not committed fraud and that the stock price had not been materially affected by the promotional articles. Plaintiff’s counsel persuaded the Court that because Galena and its officers closely controlled the promotion, Defendants had ultimate authority over the promotion and therefore could be held responsible for false statements made in the articles. The Court’s decision rejecting Galena’s arguments enabled the Rosen Law Firm, over two mediations in six months, to reach a settlement with Galena and its officers and directors for $20 million, consisting of $19 million cash and $1 million in Galena stock.