January 14, 2013
On January 4, 2013, the United States Court of Appeals for the First Circuit reinstated shareholder derivative claims filed by Gardy & Notis, LLP in the United States District Court for the District of Puerto Rico relating to UBS closed-end funds in Puerto Rico, including: Puerto Rico Fixed Income Fund II, Inc., Puerto Rico Fixed Income Fund III, Inc., Puerto Rico Fixed Income Fund IV, Inc., and the Tax-Free Puerto Rico Fund II, Inc.
January 07, 2013
Gardy & Notis, LLP has been appointed by the Court as lead counsel for holders of the limited partnership interest in the Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage, L.P. The case sought to recoup damages for breaches of fiduciary duty and/or aiding and abetting breaches of fiduciary duty against Bear Stearns Asset Management Inc., The Bear Stearns Companies Inc., Bear, Stearns & Co. Inc., and the directors and portfolio managers of the fund during the period beginning on August 1, 2006 (when the fund started) and concluding on July 18, 2007 (when the fund collapsed). The case alleged that defendants breached their fiduciary duty to the fund by permitting investments inconsistent with the terms of the fund’s governing documents, failing adequately to analyze and assess the credit risks of investments, assigning inflated values to assets of the fund, and permitting principal trades with related entities without required approvals by independent directors.
February 13, 2012
Gardy & Notis, LLP has been appointed by the Court as lead counsel for shareholders of Value Line, Inc. (NASDAQ: VALUE) seeking to recoup damages against Value Line's controlling shareholder and certain of its former officers based on allegations of a scheme where certain Value Line mutual funds were overcharged brokerage commissions. Value Line agreed to consent order with the SEC to disgorge the commissions and pay penalties and interest to the SEC. Along with the attorney's fees paid to defend the SEC action, the damages attributable to the 13.5% of Value Line common stock not owned by the controlling shareholder was approximately $3.36 million.