Skip to content

Menu

LexBlog, Inc. logo
NetworkSub-MenuBrowse by SubjectBrowse by PublisherJoin the NetworkGet StartedSubscribeSupportContact
Search
Close

Judge Rakoff Appoints Retired Judge Turned Investor as Co-Lead Plaintiff in Securities Fraud Class Action

By Charles Michael on April 11, 2012
Email this postTweet this postLike this postShare this post on LinkedIn

In an order Monday, Judge Rakoff appointed retired California judge Jeffrey Tauber to be one of two co-lead plaintiffs in a securities fraud class action against (among others) a hedge fund  that allegedly bought stock in Sigma Designs, Inc. while in possession of inside information about strong company performance.  Judge Rakoff observed that Judge Tauber has “significant legal credentials and impressed the Court at the hearing as someone who will supervise his attorneys closely.”  Judge Tauber, like any other judge, will surely have no problem keeping a close watch on the lawyers. Judge Tauber is an unusal securities fraud victim.  He bought over 22,000 shares of Sigma Designs, Inc. stock in July and August 2007 for around $31-33 per share, and sold it two months later for around $52 per share.  (See here.)   That’s about a $400,000 profit in 60 days — not bad for a judge.   He and other sellers were allegedly defrauded because the hedge fund defendant bought shares knowing that  Sigma Designs, Inc. would beat earnings expectations. The price stock of Sigma Designs, Inc. peaked shorty after Judge Tauber sold and now trades at under $5 per share (see here).  In other words, being the victim of securities fraud seems to have worked out all right in this case.

Photo of Charles Michael Charles Michael

Charles Michael is an accomplished commercial litigator who resolutely defends clients in high stakes disputes and arbitrations. He is also experienced in regulatory and criminal investigations, and represents clients under investigation by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority…

Charles Michael is an accomplished commercial litigator who resolutely defends clients in high stakes disputes and arbitrations. He is also experienced in regulatory and criminal investigations, and represents clients under investigation by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), the Commodity Futures Trading Commission (CFTC), and the Department of Justice (DOJ).

Read more about Charles MichaelEmail
Show more Show less
  • Posted in:
    Banking, Finance and Securities
  • Blog:
    SDNY Blog
  • Organization:
    Steptoe LLP
  • Article: View Original Source

Call us at 1-800-913-0988 or email sales@lexblog.com.

Facebook LinkedIn Twitter RSS
The Library at LexBlog
  • About LexBlog
  • The Field We Built
  • Library at LexBlog
  • Our Beliefs
  • Our Team
  • Contact LexBlog
  • Disclaimer
  • Editorial Policy
  • Terms of Service
  • Get Started
  • Publishing Solutions
  • Compass
  • Submit a Request
  • Support Center
  • System Status
Copyright © 2026, LexBlog, Inc. All Rights Reserved.
Law blog design & platform by LexBlog LexBlog Logo