What should I do if I discover fraud against the government?

If you have evidence of fraud involving government contracts, healthcare programs, or financial misrepresentation, you may be eligible to file a whistleblower lawsuit under the False Claims Act. A False Claims Act attorney can help you understand your rights and the legal steps involved in reporting fraud.

How does the False Claims Act protect whistleblowers?

The False Claims Act provides legal protections against retaliation, such as termination or demotion, for individuals who report fraud. Whistleblowers may also be eligible for financial compensation if their case leads to a successful recovery.

What are my rights if I was wrongfully terminated from my job in Massachusetts?

Massachusetts laws, including Chapter 151B and the Massachusetts Wage Act, provide protections for employees against wrongful termination, workplace discrimination, and retaliation. An employment law attorney can help determine if you have a legal claim.

Can I sue for damages if I was harmed by a defective product?

Yes, Massachusetts product liability laws allow consumers to seek compensation for injuries caused by unsafe products, including medical devices, pharmaceuticals, and consumer goods. A defective product attorney can help determine liability and legal options.

What legal protections exist for survivors of sexual abuse in Massachusetts?

Survivors of sexual abuse can file civil claims against individuals and institutions responsible for harm. Massachusetts laws allow survivors to seek justice even years after the abuse occurred. A sexual abuse lawyer can help navigate the legal process confidentially.

How can a cybersecurity lawyer help if my personal data was compromised?

If your personal or financial data was exposed in a breach, you may have legal recourse under Massachusetts data privacy laws (201 CMR 17.00). A cybersecurity attorney can assess whether you have a claim and help you take legal action.

Securities Litigation Attorney in Boston

Securities Litigation

What types of securities fraud cases does Graydon Sommer PLLC handle?

Graydon Sommer PLLC handles a comprehensive range of securities fraud cases, including fraudulent misrepresentation in financial statements, failure to disclose material information, market manipulation, insider trading, Ponzi schemes, hedge fund and private equity fraud, cryptocurrency/digital asset fraud, and breaches of fiduciary duty. We represent individuals, institutional investors, and groups harmed by corporate wrongdoing in both individual and class action litigation.

What is the statute of limitations for securities fraud claims in Massachusetts?

Securities fraud claims have specific timeframes for filing. Under federal securities laws, claims generally must be filed within 2 years of discovery of the facts constituting the violation, and no more than 5 years after the violation occurred. Under Massachusetts securities law (Chapter 110A), private claims generally must be filed within 4 years of the violation, and extensions for discovery may be limited. Massachusetts Chapter 93A claims typically have a 4-year statute of limitations. Because determining the applicable deadline can be complex, it’s advisable to consult with a securities litigation attorney promptly after discovering potential fraud.

How can shareholders recover losses from securities fraud?

Shareholders can pursue several legal avenues to recover losses from securities fraud, including: (1) direct individual actions for personal losses, (2) class action lawsuits where many shareholders collectively seek recovery, (3) derivative lawsuits brought on behalf of the corporation itself, (4) participation in SEC or FINRA recovery funds when available, and (5) FINRA arbitration for disputes with brokers or financial advisors. Each approach has different requirements, potential remedies, and strategic considerations that an experienced securities litigation attorney can help navigate.

What evidence is needed to prove securities fraud?

Proving securities fraud typically requires evidence of: (1) material misrepresentations or omissions, (2) scienter (intent to deceive or recklessness), (3) a connection to the purchase or sale of securities, (4) reliance on the misrepresentation, (5) economic loss, and (6) loss causation (the misrepresentation caused the loss). Evidence may include financial statements, SEC filings, investor communications, insider trading patterns, whistleblower testimony, expert analysis of market movements, and internal corporate documents obtained through discovery.

How does a securities class action lawsuit work?

Securities class actions begin with a lead plaintiff filing a complaint alleging violations of securities laws. If the case survives motions to dismiss, the court must certify the class, defining who is included (typically investors who bought/sold securities during a specific period). The litigation then proceeds through discovery, potential settlement negotiations, and if necessary, trial. Most securities class actions that survive early dismissal result in settlements, which are distributed to class members based on a court-approved plan of allocation.

What is the difference between direct and derivative securities lawsuits?

In a direct lawsuit, shareholders sue to recover their own personal losses caused by securities fraud or other misconduct. The recovery goes directly to the affected shareholders. In a derivative lawsuit, a shareholder sues on behalf of the corporation itself against those who harmed the company (often officers or directors). Any recovery goes to the corporation, benefiting shareholders indirectly. Derivative actions typically require a demand on the board of directors before filing, unless such demand would be futile.

How can victims of cryptocurrency or digital asset fraud seek recovery?

Victims of cryptocurrency fraud can pursue recovery through several channels: (1) securities litigation if the digital asset qualifies as a security under the Howey test, (2) commodities fraud claims for certain digital assets, (3) common law fraud or misrepresentation claims, (4) claims against exchanges or platforms for negligence or breach of contract, (5) Massachusetts Chapter 93A claims for unfair or deceptive practices, and (6) participation in regulatory enforcement actions. Recovery often involves tracing digital assets through the blockchain, identifying responsible parties, and navigating evolving legal frameworks for digital assets.

What compensation can be recovered in securities litigation?

Securities litigation can potentially recover several types of compensation: (1) actual financial losses (difference between price paid/received and true value), (2) out-of-pocket damages, (3) rescission (unwinding the transaction), (4) prejudgment interest, (5) attorneys’ fees under certain statutes, and (6) in limited circumstances under state law, punitive damages for egregious conduct. Federal securities laws generally do not provide for punitive damages, but certain state-law claims may permit them. Massachusetts Chapter 93A may allow for multiple damages in cases of willful misconduct. The specific remedies available depend on the nature of the claims, applicable laws, and particular circumstances of the case.

How does Graydon Sommer PLLC handle securities litigation fee arrangements?

Graydon Sommer PLLC typically handles securities litigation matters on a contingency fee basis, where payment is typically contingent on obtaining a recovery for the client, in accordance with our written fee agreements. This arrangement aligns our interests with our clients and provides access to justice for those who might otherwise be unable to afford legal representation against well-resourced corporate defendants. Each case is evaluated individually, and all fee arrangements are clearly documented in our engagement agreements.

What role do whistleblowers play in securities fraud cases?

Whistleblowers are often crucial in exposing securities fraud, providing insider information that might otherwise remain hidden. Under the SEC Whistleblower Program, individuals who provide original information leading to successful enforcement actions may receive 10-30% of monetary sanctions. Whistleblowers are legally protected from employer retaliation. Our firm can help whistleblowers navigate reporting procedures and protection mechanisms while maximizing potential awards.

We represent individuals harmed by corporate wrongdoing, using securities litigation and whistleblower suits to pursue justice and financial recovery.

$5B

In 2019, Facebook agreed to a $5 billion settlement with the FTC over privacy violations related to the Cambridge Analytica scandal.

$3B

In 2020, Wells Fargo paid a $3 billion settlement to the SEC and DOJ over its fraudulent sales practices, including the creation of millions of fake accounts.

$2.9B

In 2020, Goldman Sachs agreed to pay over $2.9 billion globally to settle charges related to the 1MDB bribery and money-laundering scandal.

$6B

In 2022, Allianz Global Investors agreed to pay over $6 billion in restitution for misrepresenting risks and abandoning strategies in its Structured Alpha funds.

In 2022, cryptocurrency exchange FTX collapsed, leading to over $8 billion in investor losses due to alleged securities fraud and other financial misconduct.

Notorious incidents like the Enron scandal, the Subprime Mortgage Crisis, and the FTX collapse highlight the devastating consequences of financial misconduct. These events, along with insider trading and market manipulation, inflict trillions of dollars in losses when adjusted for inflation, destroy jobs, bankrupt businesses, and erode the life savings of countless individuals and families.

We help investors and workers recoup losses and safeguard their interests against the devastating impacts of corporate fraud. Our firm is dedicated to enhancing shareholder value and corporate governance by addressing a spectrum of corporate misconduct, from options backdating and insider trading to fraudulent financial reporting.

Overview

White-collar crime often evades detection due to its intricate concealment methods and cross-border complexities, evidenced by a mere 1% detection and prosecution rate.

In 2014, Bank of America reached a record $16.65 billion settlement with the U.S. DOJ to resolve federal and state civil claims, related to financial fraud and the sale of toxic mortgage-backed securities, contributing to the 2008 financial crisis.

Corporate Accountability

U.S. publicly traded corporations operate under fiduciary duties that, combined with market pressures, often lead executives to prioritize shareholder returns. This focus on quarterly earnings frequently conflicts with public interest, legal compliance, and social stability. The result: corporate decisions that boost short-term profits while sacrificing long-term value and sometimes crossing legal boundaries.

Documented Corporate Decisions: One striking example can be found in the Ford Pinto case, where internal memos reportedly revealed the company’s cost-benefit analysis comparing vehicle repairs against projected costs from injuries and deaths. Similarly, court documents show Purdue Pharma marketed OxyContin despite growing evidence connecting it to a nationwide opioid epidemic that contributed to hundreds of thousands of deaths. In another well-documented case, Volkswagen installed “defeat devices” in millions of vehicles to alter emissions testing results while marketing their cars as environmentally friendly.
Healthcare and Human Cost: Consider how in the health insurance industry, the denial of claims can be treated as a financial gain and the approval of medically necessary care may appear on the balance sheet as a liability. In this framework, human suffering sometimes becomes a business strategy.
Financial Market Manipulation: In capital markets, institutional investors often extract value from volatility, monetizing turbulence while remaining insulated from its consequences. For many financial institutions, market dislocation isn’t a threat—it’s a business model. Meanwhile, long-term investors—pension funds, retirees, and ordinary households—absorb the punishing impact of systemic shocks with virtually no protection. These asymmetries aren’t accidental; they’re engineered to benefit insiders at the expense of everyone else.
The financial media ecosystem often functions less as a source of objective analysis and more like a loudspeaker amplifying market volatility in what can resemble a rigged casino. Retail investors are frequently coaxed toward action under an illusion of precision, while the system’s celebrated figures—from Sam Bankman-Fried to Jeffrey Skilling, Elizabeth Holmes to Martin Shkreli, Charlie Javice to Rishi Shah—rise to prominence through compelling innovation narratives before their eventual fraud convictions expose the deception behind the spectacle.
In these and countless similar cases, corporate executives sacrifice public welfare and long-term stability on the altar of quarterly profits. We represent investors and whistleblowers who refuse to accept this status quo. Securities litigation serves as both a pathway to financial recovery and a powerful mechanism for redefining accountability—challenging a marketplace where misaligned incentives systematically undermine public trust and personal security.

White-collar crime is pervasive and often goes unreported and unprosecuted, with occupational fraud alone accounting for over $3.6 billion in global losses annually, according to ACFE estimates.

Shareholders' Rights

Securities Fraud: Initiate legal action for securities fraud, including insider trading and misrepresentation.
Derivative Lawsuits: Hold executives accountable for corporate wrongdoing when the company fails to act.
Class Actions: Unite to recover losses from corporate malpractices through collective legal action.
Whistleblower Protection: Support whistleblowers exposing unethical or illegal conduct within corporations and protect them from retaliation.
Investment Recovery: Seek recovery for losses due to embezzlement, accounting fraud, and other white-collar crimes.

We advocate for clients seeking to recover losses from fraudulent corporate practices.

Lawyers' Role

Strategic Legal Advocacy: We transform complex securities laws into clear, actionable paths for our clients, ensuring they understand their rights and the legal avenues available for redress.
Focused Plaintiff Representation: We represent plaintiffs against powerful corporations, concentrating on recovering financial losses and holding entities accountable for fraud and misrepresentation.
Direct Action for Accountability: We actively pursue legal actions against individuals and companies responsible for financial misconduct, seeking not only compensation, but also to improve practices for the wider community.
Tailored Case Development: Each claim is meticulously developed, with evidence gathered and arguments honed to present the strongest possible case.

How We Can Help

Fraudulent Misrepresentation and False Financial Statements

Represent investors harmed by materially false or misleading statements in financial reports, earnings calls, or investor presentations that result in investment losses. Seek appropriate remedies and structural governance improvements where warranted.

Failure to Disclose Material Information

Advocate for investors affected by companies that conceal material facts, such as pending litigation, regulatory investigations, or deteriorating financial conditions, in violation of federal and state disclosure obligations.

Market Manipulation and Insider Trading

Pursue claims involving artificial market activity, including algorithmic trading abuses, spoofing, and the misuse of material non-public information. Particular focus on complex or international misconduct that distorts market integrity.

Ponzi Schemes and Financial Fraud

Support recovery efforts for victims of fraudulent investment schemes by tracing assets, coordinating with receivers, and initiating civil actions where appropriate.

Hedge Fund and Private Equity Fraud

Handle disputes involving undisclosed fees, manipulated valuations, misrepresented performance data, and conflicts of interest that harm limited partners and institutional investors.

Cryptocurrency and Digital Asset Fraud

Represent investors harmed by deceptive token offerings, price manipulation on crypto exchanges, DeFi exploits, or digital asset platform failures, applying securities laws to emerging asset classes.

Breach of Fiduciary Duty and Corporate Mismanagement

Hold officers, directors, and fund managers accountable for self-dealing, excessive compensation, and oversight failures that diminish shareholder value or violate fiduciary obligations.

Emerging Securities Trends (SPACs and ESG Claims)

Address misstatements and due diligence failures in SPAC transactions, along with misleading environmental, social, or governance (ESG) claims used to influence investment decisions.

Whistleblower Protections in Securities Fraud

Represent individuals reporting securities violations under the SEC and CFTC whistleblower programs. Provide guidance regarding protections against retaliation and eligibility for statutory awards.

Financial Advisor Misconduct and Arbitration

Advocate for investors harmed by unsuitable investment advice, unauthorized trading, or other violations of fiduciary and FINRA obligations, including through arbitration proceedings.

Class Actions for Excessive Mutual Fund Fees

Lead investor class actions under Section 36(b) of the Investment Company Act, challenging mutual fund fee structures that significantly exceed those charged to institutional clients.

Bankruptcy, Insolvency, and Debt Restructuring Fraud

Litigate claims arising from fraudulent transfers, preferential payments, and material misstatements in the context of bankruptcy or restructuring proceedings.

Bank Failures and AML Violations

Represent clients impacted by financial institutions’ inadequate compliance with anti-money laundering (AML) laws or Bank Secrecy Act (BSA) obligations, particularly where those failures contribute to investor losses.

Merger and Acquisition Litigation

Challenge transactions involving inadequate consideration, improper deal protections, or conflicted decision-makers. Seek enhanced disclosures or improved deal terms where shareholder interests are compromised.

Auditor and Gatekeeper Liability

Pursue claims against auditors, underwriters, and counsel who approve or fail to detect materially misleading financial statements, particularly where professional negligence or willful disregard is evident.

Foreign Corrupt Practices Act (FCPA) Violations

Represent shareholders harmed by corporate conduct that violates the FCPA, such as overseas bribery schemes that result in financial penalties or reputational harm. Also advise whistleblowers reporting such violations.

Antitrust and Market Allocation Schemes

Address conduct that artificially inflates securities prices, including price-fixing and market allocation agreements that undermine fair competition and harm investor interests.

Investment Grade Bond and Municipal Securities Fraud

Assist bondholders misled about creditworthiness, default risks, or material financial changes, especially in structured or municipal offerings.

Proxy Voting Fraud and Shareholder Democracy

Challenge proxy solicitation abuses, vote suppression tactics, and governance practices that diminish minority shareholder rights or distort election outcomes.

Commodities and Futures Manipulation

Pursue claims involving price manipulation in commodities and futures markets, including energy, agriculture, and precious metals, using available regulatory and civil enforcement mechanisms.

Algorithmic and High-Frequency Trading Abuses

Investigate trading strategies such as spoofing, layering, and momentum ignition that distort price discovery and undermine market transparency, particularly in retail-facing environments.

ERISA Stock Drop Litigation

Represent participants in employer-sponsored retirement plans harmed by fiduciary breaches tied to artificially inflated company stock prices or undisclosed corporate risks.

Broker-Dealer Misconduct

Advocate for investors subjected to excessive trading (churning), negligence, unsuitable investment recommendations, or unauthorized transactions in violation of FINRA and SEC standards.

Delayed or Denied Shareholder Distributions

Assist minority shareholders in recovering lawfully owed dividends or distributions that are improperly withheld, particularly in closely held corporations and fund structures.

Data-Driven Securities Litigation

Investigate improper use of artificial intelligence, predictive analytics, and trading algorithms that exploit or distort investor behavior, applying novel legal theories to protect market fairness.

Tax Fraud and Evasion Impact

Address investor losses resulting from corporate tax evasion schemes, including misstatements that trigger regulatory action or financial restatements. Focus on complex cross-border structures and material risk concealment.