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Case Status:    DISMISSED    
On or around 09/28/2009 (Court's order of dismissal)

Filing Date: February 17, 2009

The complaint is filed against Defendants Stanford Group Company, Stanford Financial Group, Stanford International Bank, LTD., Stanford Holdings, Inc., Stanford Capital Management, LLC (collectively referred to as “Stanford”) and certain individual Defendants.

Specifically, the complaint alleges that Stanford, and the individual Defendants, engaged or participated in the implementation of manipulative devices to falsely report investment returns to customers, made or participated in the making of false and misleading statements, and participated in a scheme to defraud, or a course of business that operated as a massive fraud or a deceit on its customers. Plaintiffs’ claims include fraud based on misrepresentation in connection with the sale of securities in violation of the Securities Act of 1933 and the Securities Exchange Act of 1934. As a result of Defendants’ wrongful conduct and scheme, thousands of investors placed millions of dollars into Stanford’s managed portfolios, including the purchase of “depositor-secured” Certificates of Deposit, and have sustained significant financial losses.

This fraud was accomplished though the direction and active participation of the individual Defendants who knowingly violated Securities and Exchange Commission (“SEC”) and FINRA regulatory provisions, and federal securities law. When certain employees of Stanford complained about discrepancies in certain investment results, Stanford, through its officers and directors (including the individual Defendants), knowingly attempted to “cover up” this information, opting instead to hide and obstruct the truth, and Stanford’s duty of compliance with regulatory and statutory law, and its fiduciary duty of full and fair disclosure to its customers.

On or about February 17, 2009, the SEC filed its complaint in the United States District Court, Northern District, in Dallas, Texas, No. 3-09CV0298, alleging, inter alia, a myriad of false and misleading practices by Stanford and its individual officers and control persons, in violation of federal securities law. In response to the SEC’s Application for Emergency Relief, the Honorable Reed O’Connor issued a Temporary Restraining Order enjoining further violation of federal securities law, freezing the assets of the certain Defendants, ordering the return of assets outside the United States to the jurisdiction of the federal court, and appointing a Receiver to marshal the assets of certain Defendants.

Similar class action complaints have been filed in the U.S. District Courts for the Northern District of Texas and the Middle District of Louisiana.

On September 28, 2009, an order was granted on the Plaintiffs' motion to dismiss the case with prejudice.


Sector: Financial
Industry: Investment Services
Headquarters: United States


Ticker Symbol:
Company Market: Privately Traded
Market Status: Privately Held

About the Company & Securities Data

"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. Texas
DOCKET #: 09-CV-00474
JUDGE: Hon. Vanessa D Gilmore
DATE FILED: 02/17/2009
CLASS PERIOD END: 02/17/2009
  1. Fleming & Associates, LLP
    1330 Post Oak Boulevard Suite 3030, Fleming & Associates, LLP, TX 77056-3019
    713.621.7944 713.621.9638 ·
  2. Mike O'Brien, P.C.
    14355 Highway 105, Mike O'Brien, P.C. , TX 77880
    713.222.0088 713.222.0088 ·
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