Waymaker handles securities disputes for plaintiffs and defendants. We are experienced in representing financial technology companies, venture capital investors, exchanges, banks, investment professionals, and individual investors. The firm’s attorneys have handled securities cases involving allegations of fraud, breach of fiduciary duty, failure to comply with federal or state registration requirements, and breach of contract claims in a variety of forums – including federal court, state court, arbitration proceedings before FINRA or other arbitral bodies, and investigations before the SEC.
The firm’s attorneys include former federal prosecutors, one of whom is also a former SEC enforcement attorney, and seasoned civil litigators with experience before FINRA and other arbitral bodies. For example, Waymaker partner Keri Axel previously worked as an SEC enforcement attorney and as a federal prosecutor. In the private sector, she often represents private fund managers, Investment Advisers, and other financial industry members in litigation and SEC investigations. Partner Jaime Marquart also has significant experience in FINRA disputes and corporate divorce matters.
Waymaker is frequently called upon to defend clients in the financial technology space against class actions alleging the unregistered sale of securities, fraud, and other claims. In particular, Partners Scott Malzahn, Teresa Huggins and Don Pepperman have represented clients in the blockchain and cryptocurrency community in many high-profile class actions, such as securities litigation over Block.one’s initial coin offering (ICO) of digital tokens that raised the equivalent of several billion dollars. The firm represents founders, start-ups, established market leaders, venture capital firms, and others in class actions in California and elsewhere.
Although some representative engagements are listed below, the firm’s work for clients is often unpublished and takes place before regulators or in confidential arbitral forums. We have recovered hundreds of millions of dollars for certain clients and have helped others avoid similar sums in liability. We take certain securities cases on a contingency or hybrid fee arrangement.
Notable Engagements:
- Assil v. Manana Media
Represented an investor in an international media company seeking to collect on various financial instruments through which he had invested in, and loaned money to, the company. After extensive discovery and motion practice, the parties reached an agreement that permitted our client to establish priority and recover the majority of his investment.
- Cronin v. Zions Direct, Inc.
Represented Zions Direct in FINRA arbitration against claims from an individual arising from losses in a stock trading account. Following early discovery, we negotiated a favorable resolution for our client.
- East Bay Restaurant and Tavern Retirement Plan v. Grasswood Partners, Inc.
Represented an investment advisor and his company against breach of fiduciary duty claims brought by pension fund. After successfully compelling arbitration of two related actions filed in federal courts in Delaware and California, we successfully negotiated a settlement for our clients.
- Singh v. Medina
Represented defendant-hedge fund founder and portfolio manager in a co-founder dispute in Delaware Chancery Court over management and future of a private fund. We successfully moved for a Temporary Restraining Order/Status Quo Order to bar the co-founder from interfering in the operations of the fund. After motion practice that kept our client in charge of the fund during the pendency of litigation, we negotiated a favorable settlement.
- McGladrey Capital Markets v. Icon Aircraft, Inc.
Successfully defended a client in an arbitration against multi-million dollar claims brought by an investment bank over a round of financing that had been raised for the client. After a five-day long arbitration, the arbitrator ruled in our client’s favor and ordered the bank to reimburse our client for nearly all its attorneys’ fees and costs.
- Crypto Assets Opportunity Fund v. Block.one
Defended Block.one against allegations that it violated securities laws in connection to its $4 billion token sale, the largest in history. The dispute was settled on a class-wide basis for $22 million at a fraction of the amount in dispute.
- Kent v. PoolTogether, Inc.
Defended an investment firm in a putative class action lawsuit involving allegations that various defendants were involved in operating an illegal lottery in violation of New York state law. After we filed a motion to dismiss, the Court dismissed plaintiff’s case for lack of standing.
- In re: FTX Cryptocurrency Exchange Collapse Litigation
Represented an investment firm in multi-district litigation arising out of the collapse of the FTX cryptocurrency exchange. Plaintiffs assert a wide range of claims against multiple groups of defendants in this sprawling litigation, including claims against venture capital defendants like our client who themselves invested in FTX.
- In Re Tezos Securities Litigation
Represented Arthur and Kathleen Breitman in connection with two securities class action lawsuits involving the Tezos fundraiser, which raised approximately $230 million. After aggressively pursuing discovery, the original lead plaintiff withdrew from the case. We subsequently negotiated a resolution.