Case Studies

Fifth Circuit Decision Obtained in Securities Class Action

Since 2003, Thompson & Knight has represented a former CEO and Senior Executive Vice President of Sales of a telecommunications company in a class action brought under federal securities laws. In 2005, a class was certified against our clients, and the Firm reversed that decision at the Fifth Circuit. As a result of that decision, all plaintiffs in the Fifth Circuit are required to prove that any alleged false statement actually caused a loss before the court will allow class status. On remand in May 2010, an opinion was issued denying the plaintiffs' second motion to certify a class. Plaintiffs then attempted to take a permissive, interlocutory appeal to the Fifth Circuit. In August 2010, the Fifth Circuit denied that appeal. Without the overwhelming leverage of class status, the exposure to the Firm's clients was greatly reduced.

Foreign-Sovereign Immunity Case Dismissed

The plaintiffs sued our client, a national oil company, alleging breach of fiduciary duties and fraud in connection with the potential purchase and development of two oil and gas concessions in Egypt. We denied the plaintiffs' claims and moved to dismiss the case based on foreign-sovereign immunity, and alternatively, moved to compel arbitration of the parties' dispute. The claimed damages sought by the plaintiffs exceeded $10 million. The U.S. District Court for the Southern District of Texas, Houston Division, granted our motion to dismiss based on foreign-sovereign immunity.

Summary Judgment Secured in RICO Class Action

Thompson & Knight secured a complete victory in favor of our clients in the Eastern District of Texas. Plaintiffs were offshore workers who filed a class action against our clients and others, alleging a RICO conspiracy between various offshore operators and manning companies to employ unauthorized workers and suppress the wages of American offshore workers. Earlier in the case, our attorneys obtained a dismissal on some of the plaintiffs' claims and a partial summary judgment. A granting of the latest motion for summary judgment and motion to dismiss resolved all claims and resulted in a final judgment in favor of our clients. Although the lawsuit lasted nearly six years, our team secured final victory before class discovery or class certification, which saved our client substantial litigation cost.

Appellate Victory Obtained in Eastern District of Texas Patent Case

Thompson & Knight is pleased to report an appellate victory for its client in the U.S. Court of Appeals for the Federal Circuit. The suit alleged patent infringement by the manufacture, sale, and use of a product monitored by our client, a security system company. During the second day of trial, our attorneys, together with counsel for a fellow defendant, argued that the report of the plaintiffs' infringement expert did not adequately support the plaintiffs' infringement allegations against the monitoring defendants. As a result, the Judge precluded the plaintiffs' expert from testifying about infringement by our client and the other monitoring defendants. When the plaintiffs rested the next day, the Judge granted the monitoring defendants' motion for judgment as a matter of law of non-infringement. On July 19, 2010, the Federal Circuit agreed with the Eastern District of Texas that the plaintiffs failed to provide enough evidence of infringement and affirmed the District Court's Judgment. View more information.

SEC Enforcement and Receivership Cases

Richard B. Roper was appointed Receiver by the U.S. Securities and Exchange Commission ("SEC") in SEC v. Millennium Bank, et al. According to the SEC complaint, this case involves an ongoing $68 million Ponzi scheme involving approximately 375 investors. Additional information on the Millennium Bank Receivership is available at www.tklaw.com/millennium_bank_receivership.cfm.

Thompson & Knight is one of the firms serving as counsel for Ralph S. Janvey, the Receiver, in SEC v. Stanford International Bank Ltd., et al. The Receiver was appointed to seize and collect assets of Stanford in connection with the allegations by the SEC and FBI that Texas billionaire R. Allen Stanford perpetrated an $8 billion fraud on investors worldwide.

T&K Guides Cross Canyon Through Pre-Pack Chapter 11 Process

Thompson & Knight obtained confirmation of a pre-packaged ("pre-pack") Chapter 11 bankruptcy plan for Cross Canyon Energy Corp. The pre-pack was confirmed in 42 days at hearing on March 11, 2010. Thompson & Knight also handled the Baseline Oil & Gas Corp. Chapter 11 pre-pack in 2009 and the Davis Petroleum Corp. Chapter 11 pre-pack in 2006, which are among the fastest to be confirmed in the U.S. View more information.