Labaton Sucharow Settles Virtus Securities Class Action for $22 Million
NEW YORK, August 6, 2018 – Labaton Sucharow, as co-lead counsel, has settled a securities class action lawsuit brought against Virtus Investment Partners for $22 million. The action alleged that Virtus made false and misleading statements to investors about the performance of its “AlphaSector” funds.
Labaton Sucharow and co-counsel prevailed over defendants’ motion to dismiss the suit in 2016, and Judge Pauley of the U.S. District Court for the Southern District of New York granted class certification in May 2017, even though he simultaneously denied certification in another suit with similar allegations brought by a class of mutual fund investors.
The defendants’ motion for summary judgement was pending when the parties entered into an agreement in principle to settle the action earlier this year. Judge Pauley then granted preliminary approval of the settlement on June 28, 2018.
The Labaton Sucharow team, which represented lead plaintiff Arkansas Teacher Retirement System, included partners James Johnson and Michael Rogers and associate John Esmay.