How Corporate Crises in Latin America Can Lead to Securities Class Actions in U.S. Courts

July 1, 2019
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In the past decade, several large companies have been the subject of high-profile U.S. securities class actions arising out of corporate crises in Latin America, including claims related to environmental disasters and corruption.
These cases serve as a warning to Latin American companies issuing securities in the United States that a corporate crisis could lead to a class action lawsuit.
S&C litigation partner Brendan Cullen outlines the steps involved in defending against a securities class action and offers guidance on how to avoid becoming a defendant in such a lawsuit in a chapter published in The Guide to Corporate Crisis Management, First Edition. 

S&C partners Sergio Galvis, Robert Giuffra and Werner Ahlers edited the 189-page guide and together they co-authored its introduction. The Guide offers practical strategies for businesses to plan for and manage a range of crisis situations, including corruption scandals, environmental accidents and government instability.
Throughout more than a century of involvement in Latin America—dating back to the creation of the Panama Canal—S&C has played an integral role in Latin America’s economic and legal history.
Today, S&C is known for:

  • Being the leading international law firm in M&A deals in the region, advising on the highest volume by dollar value over the last five years
  • Advising on over 50% of the market’s sovereign offerings in the last five years
  • Representing more sponsors and borrowers on project financings in the region than any other firm over the last three decades
  • Key litigation successes, including:
    • Representing the Central Bank of Argentina in three successful arguments before the U.S. Court of Appeals for the Second Circuit
    • Defending the Mexican airline Volaris and individual defendants against a U.S. putative class action arising out of the client’s IPO
    • Dallas Airmotive Inc. in resolving a three-year FCPA investigation by the U.S. Department of Justice