Caryn Schechtman practices in the areas of private securities litigation as well as securities regulatory law. She represents companies and individuals in investigations conducted by the US Department of Justice, the Securities and Exchange Commission, the New York Attorney General's Office, FINRA and other federal and state agencies. Ms. Schechtman represents both foreign and US clients.

Ms. Schechtman has focused on matters involving market manipulation or allegations of false representations in the purchase or sale of securities and insider trading. Her clients include individuals, hedge funds, public companies, private companies, investment advisors, brokerage firms and other financial services firms.

Representative Cases

Securities: Death Spiral/PIPEs (private investment in public equities) Litigation

• First in Texas and then in New York federal court, defense of a US-based investment advisor, its principals and an offshore investment fund in a purported death spiral securities fraud action against claims of unlawful market manipulation and fraudulent misrepresentations arising out of a securities purchase agreement for future priced securities. Based on a motion to dismiss for misuse of the discovery process, widely publicized on the front page of the New York Law Journal and in the Los Angeles Daily Journal, the court dismissed the plaintiffs' $300 million securities fraud complaint with prejudice. The court subsequently granted summary judgment in favor of the offshore investment fund and awarded our client $5 million plus attorneys fees
• First in Colorado and then in New York federal court and state court, defense of a US-based investment advisor, its principals and an offshore investment fund in a purported death spiral securities fraud action against claims of unlawful market manipulation and fraudulent misrepresentations arising out of a securities purchase agreement for future priced securities. On our motion for summary judgment, the court dismissed the plaintiffs' $300 million securities fraud complaint with prejudice. The court subsequently granted summary judgment in favor of the offshore investment fund
• First in Texas and then in New York federal court, defense of an investment advisor and its principals in a purported death spiral securities fraud action against claims of unlawful market manipulation and fraudulent misrepresentations arising out of a securities purchase agreement for future priced securities. Based on the strength of the motion for judgment on the pleadings, and in order to avoid Rule 11 sanctions, plaintiffs voluntarily agreed to dismiss their complaint with prejudice and without any payment or consideration
• In Nevada federal court, defense of an investment advisor based in the US, its principals and certain offshore investment funds, in a purported death spiral securities fraud action against claims of unlawful market manipulation and fraudulent misrepresentation arising out of a securities purchase agreement for future priced securities. The plaintiff voluntarily dismissed its action, and we obtained a judgment of $1 million for our client on its own claims against the plaintiff
• In Colorado state court, defense of broker-dealers in a purported death spiral securities fraud action against claims of unlawful market manipulation and fraudulent misrepresentations arising out of a securities purchase agreement for future priced securities. Our clients' motion to dismiss the complaint was granted in its entirety and with prejudice

Securities: Naked Shorting Litigation

• In Texas, defense of a number of national broker-dealers including market makers in a purported naked shorting state securities fraud action against such alleged claims as unlawful market manipulation, RICO and common law fraud. After removing the action from Texas state to Texas federal court based on a federal preemption argument, we successfully moved to dismiss the case
• In Nevada federal court, representation of multiple national broker-dealers including a market maker in a naked shorting securities fraud action against such claims as unlawful market manipulation, RICO and common law fraud. The court granted our motion to dismiss the case

Securities: China

• Representation of an AMEX-traded Chinese company and several of its officers and directors in a securities class action pending in the Central District of California
• Representation of an NYSE-traded Chinese company in connection with market fallout relating to a change in management and the dismissal of the company's audit firm
• Representation of an underwriter in a securities fraud class action lawsuit concerning alleged material misstatements in prospectus filed by a China-based issuer listed on a US exchange
• Representation of a US-listed Chinese company in an SEC investigation

Securities: Other

• Representation of a former accounting firm executive in an SEC enforcement action alleging insider trading
• Representation of individual defendants in criminal securities fraud cases investigated by the US Attorney alleging insider trading and market manipulation
• Representation of investment advisors in SEC informal and formal investigations into allegations concerning valuation methodology
• Representation of a public company in an SEC investigation concerning allegations of fraudulent misstatements concerning the company's products
• Representation of a private company in an SEC investigation concerning allegations of fraudulent misstatements to potential investors
• Representation of investment advisors in SEC informal and formal investigations into allegations of improper trading including insider trading and violations of Section 5 of the Securities Act
• Representation of investment advisors in civil lawsuits alleging violations of Section 16 for short swing trades. We successfully obtained voluntarily dismissals with prejudice for our clients