Securities Fraud

The Law Offices of David Berg represents individuals, investors, and corporations in securities fraud litigation, both as plaintiffs pursuing claims and as defendants facing them, in Houston, across Texas, and throughout the country.

Securities fraud disputes carry significant financial and reputational consequences for both sides. Whether you are an investor who was deceived into a transaction, a company facing allegations of misrepresentation, or an executive under scrutiny for your role in a securities matter, retaining the right trial counsel early in the process matters.

David Berg has handled securities fraud cases for over 50 years on behalf of both plaintiffs and defendants. He is recognized by Best Lawyers in America in the Securities category and has been for decades.

Situations We Handle

Securities fraud takes many forms. The firm has handled matters involving:

• Investors defrauded through material misrepresentation or omission in connection with the purchase or sale of securities
• False or misleading financial reporting, including inflated earnings, understated liabilities, or misrepresented financial condition in SEC filings or investor disclosures
• Corporate fraud in the inducement, including transactions where the other party had undisclosed information that would have changed the deal
• Broker and advisor misconduct, including unsuitable investment recommendations, unauthorized trading, and churning
• Securities class action defense for companies and officers facing large-scale investor claims
• Fraud by corporate insiders, including breach of fiduciary duty claims brought by minority shareholders or limited partners
• Regulatory investigations and proceedings arising from securities violations, at both the state and federal levels
• Shareholder disputes involving material misrepresentation about a company’s financial condition

If your situation involves money lost or reputational exposure tied to a securities transaction, and you believe the other party acted with intent to deceive, contact us today for a free consultation. 

Our Approach

David Berg builds every case for trial from the first day of the engagement. That orientation shapes how early case evaluation happens, how discovery is pursued, and what position the client is in if negotiation follows.

Securities fraud cases are often won or lost on the quality of the factual record. That means early and thorough work to identify the documents, witnesses, and financial data that establish what the other party knew and when they knew it. It also means working with financial and industry experts who can translate complex transactions into a narrative a jury understands.

The firm represents both plaintiffs and defendants in securities fraud matters. On the plaintiff side, that means building a case for recovery with trial preparation running from the start. On the defense side, it means identifying weaknesses in the opposing case as early as possible and pursuing those weaknesses through every stage of the proceeding, including trial. 

David Berg’s track record in commercial fraud is well documented. The $52 million verdict in the Acadia Partners case involved a Florida real estate developer and a corporate fraud claim, a matter that required a jury to understand complex financial structures and return a verdict against a well-resourced defendant. That outcome was affirmed on appeal.

The $513 million Marriott settlement arose from a fraud-in-the-inducement case in which David Berg filed suit on behalf of hundreds of limited partners who had purchased hotels that Marriott had already determined were financially underwater. The case required understanding and presenting the internal Marriott financials that showed what the company knew before the transaction closed.

Both cases reflect what it takes to win securities and corporate fraud matters at this level: thorough factual preparation and courtroom execution that culminate in a result.

What Successful Securities Fraud Litigation Can Recover

Recovery in a securities fraud case depends on the nature of the claim, the damages established, and how the case is resolved. In general, plaintiffs in securities fraud matters may pursue:

• Actual damages, calculated as the difference between what was paid and the actual value of the security at the time of purchase
• Consequential damages where the fraud caused broader financial harm
• Punitive damages in cases where the conduct was particularly egregious
• Disgorgement of profits where the defendant gained from the fraud
• Injunctive relief in appropriate circumstances

On the defense side, the goal is to contain exposure, challenge the calculation of damages, and, where the claims lack merit, pursue dismissal or summary judgment.

Every case is different. Prior results at this firm reflect what has been accomplished in past matters and do not guarantee an outcome in any future case.

Why the Timing of Your Call Matters

Securities fraud claims carry statute-of-limitations requirements that vary depending on the type of claim, the court in which it is filed, and when the fraud was discovered or should have been discovered. For federal securities claims under SEC Rule 10b-5, the limitations period is two years from the date you discovered (or should have discovered) the fraud, with an absolute cutoff of five years from the date of the violation.

Delay creates evidentiary problems regardless of the legal deadline. Documents are lost or overwritten. Witnesses’ recollections change. Financial records become harder to trace.

If you believe you have been defrauded in a securities transaction or if you are facing a securities fraud allegation, early engagement with counsel is worth acting on.

Why David Berg

David Berg has been recognized by Best Lawyers in America in the Securities category for decades. He holds recognition in eight total categories, including Bet-the-Company Litigation, Commercial Litigation, and Antitrust. The National Law Journal named him to its annual “Top Ten Civil Trial Lawyers” list.

The Lawdragon 500 Guide inducted him into its Hall of Fame, citing “a Supreme Court victory at 28” and “countless wins at the outstanding firm he built.”

If your matter involves securities fraud on either side, David Berg has the trial record and commercial litigation background to handle it.

Frequently Asked Questions

What is securities fraud?

Securities fraud occurs when individuals or corporations deceive investors by misrepresenting information about stocks, bonds, or other financial instruments. This includes insider trading, false financial reporting, and material omissions made in connection with the purchase or sale of a security. Claims can arise under federal law (Section 10(b) of the Securities Exchange Act and SEC Rule 10b-5), state securities laws, or both.

What is the difference between civil and criminal securities fraud?

Civil securities fraud involves a claim for monetary damages brought by investors or regulators against a party who committed the fraud. Criminal securities fraud involves prosecution by federal or state authorities and can result in imprisonment, fines, and restitution. The same underlying conduct can give rise to both civil claims and criminal charges, and both proceedings can run simultaneously.

Can I bring a securities fraud claim as an individual investor?

Yes. Individual investors can bring private securities fraud claims under federal and state law if they purchased or sold a security based on materially false or misleading information. The elements you must establish include that a misrepresentation or omission was material, that you relied on it, and that it caused your loss. The firm represents both individual investors and institutions in these matters.

How long do I have to file a securities fraud claim?

For federal claims under SEC Rule 10b-5, the limitations period is two years from the date you discovered (or should have discovered) the fraud, with an absolute cutoff of five years from the date of the violation. State securities fraud claims carry their own deadlines, which vary by jurisdiction. If you suspect fraud, consult counsel promptly.

Talk to David Berg About Your Securities Fraud Matter

If you are dealing with a securities fraud dispute, as an investor who has suffered losses or as a company or executive facing allegations, the Law Offices of David Berg can evaluate your situation and tell you your options.