Cross-Office Team Secures Defense Verdict in Investment Class Action

Los Angeles, Calif./Fort Lauderdale, Fla. (January 2025) - Los Angeles Partner Craig Holden and Fort Lauderdale Partner Ken Joyce, Co-Chairs of the firm’s National Complex Business & Commercial Litigation Practice, Fort Lauderdale Partner Stacy M. Schwartz, Los Angeles Partners Matt Taggart and Bryan Leifer of the Class Action Group, and Fort Lauderdale Associate Nicholas Esser obtained a defense verdict in a federal court jury trial before U.S. District Judge Michael Fitzgerald of the Central District of California. Tampa Associate Elizabeth Brusa supported the trial team through her trial preparation efforts.

In a certified class action composed of nearly 200 class members under FRCP Rule 23(b)(2) and 23(c)(4), the plaintiffs - a group of limited partners in an investment group (the “Limited Partnership”) - alleged that the firm's client, the General Partner of the Limited Partnership, breached its fiduciary duties and contract with the plaintiffs. The General Partner was facing exposure of over $250 million, including punitive damages. The complex litigation involved an investment in the Ivanpah Solar Power Facility in the Mojave Desert, which is a first of its kind state-of-the-art solar power plant facility that attracted numerous prominent companies to get involved, including Google, NRG, General Electric, and a venture capitalist.

After a 12-day jury trial on liability, a Los Angeles jury rendered a verdict on all claims submitted to the jury in favor of the General Partner. According to Lewis Brisbois' research, this is the first class action jury trial that has been tried to verdict under Rule 23(b)(2) and 23(c)(4).

The plaintiffs were represented by the firm of Gaw Poe LLP.