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HALL V. FINANTRA AND SOMMERS V. CCSI
In two separate securities fraud lawsuits, Berger Singerman represented the plaintiffs, who were defrauded by the officers of unrelated public companies. Our work resulted in the clients recovering nearly all remaining proceeds from those entities’ respective officer and director insurance policies. Hall v. Finantra was pending in the 17th Judicial Circuit Court in and for Broward County, Florida, and Sommers v. CCSI was pending in the United States District Court for the Southern District of Florida. In both cases there were numerous other lawsuits filed by various aggrieved plaintiffs suing these public companies and their officers for securities fraud. In every instance, the other plaintiffs either lost their cases through motion practice or at trial, or to the extent one plaintiff in the Hall case won at trial, he failed to collect any money on the officer and director insurance policies. Berger Singerman studied the other plaintiffs’ approach and litigation strategy and adjusted his strategy accordingly. As a result, we won all of our motions, found nuances in how the facts and claims were pled and prosecuted, and made appropriate strategic decisions that resulted in the insurance companies ultimately paying out the maximum amount of the remaining policy benefits available.

MUTUAL BENEFITS – VIATICAL RECEIVERSHIP
Berger Singerman served as counsel to a Japanese entity, MBKK, Ltd. (MBKK), an investor in Mutual Benefits Corporation, which was in an SEC receivership pending in the United States District Court for the Southern District of Florida. The case involves one of the largest insurance viatical frauds in the United States. Our client, MBKK, made its investment of $15 million in Mutual Benefits Corporation shortly before the fraud was uncovered and the receivership instituted. Berger Singerman successfully argued to the Court that his client’s funds, then in the custody of the SEC receivership, were segregated and trust funds, not comingled with other corporate funds, and belonged solely to his client. As a result, MBKK recovered all of its $15 million investment within 6 months. Although numerous other investors only received small pro rata distributions from the receivership estate, many creditors followed MBKK’s lead to recover their funds.