First Regional Bancorp Securities Litigation

In Buttonwood Tree Value Partners, LP, et al. v. Jack A. Sweeney, et al., Civil Action No. 10-cv-00537-CJC-MLG (U.S. District Court for the Central District of California), CGL was appointed co-lead counsel to represent investors who filed a securities fraud class action against certain former officers and directors (the “Defendants”) of First Regional Bancorp (“FRB”), and its former banking subsidiary, First Regional Bankin Federal Court in Orange County, California. Plaintiffs alleged that the defendants made misrepresentations and omissions concerning the company’s financial and operating condition which caused FRB’s stock price to be artificially inflated. CGL and its co-counsel succeeded in defeating multiple motions to dismiss the action brought by the Defendants, as well as a motion for summary judgment.  The Court granted a motion to certify a class of investors that was vigorously contested by the Defendants.  The case was later amicably resolved, resulting in the creation of a settlement fund for the benefit of the Class.