Arnold & Porter LLP - Stewart D. Aaron

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Stewart D. Aaron

Partner

New York

tel: +1 212.715.1114
fax: +1 212.715.1399

Stewart.Aaron@aporter.com

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Practice Focus

Stewart Aaron is a partner in Arnold & Porter LLP's New York office, where he also serves as the administrative partner. He practices commercial litigation with an emphasis on securities law matters. For 25 years, Mr. Aaron's practice has involved the representation of clients in litigated matters in state and federal courts, and before regulatory bodies and self regulatory organizations.

Mr. Aaron is a frequent author and lecturer on legal topics, generally in the areas of securities, commercial, and prisoners' civil rights litigation.

Representative Matters

Fairfax Financial Holdings Limited v. S.A.C. Capital Management, LLC, et al., Docket No. L-2032-06 (N.J. Superior Court, Morris County). Representing hedge fund defendant against, among others, claims alleging violations of the New Jersey Racketeer Influenced and Corrupt Organization Act related to short selling of Fairfax stock.
In re Initial Public Offering Securities Litigation, 21 MC 92 (SAS). Represented underwriter in 67 of 310 consolidated actions in the US District Court for the Southern District of New York alleging that IPO underwriters, IPO issuers and individual officers and directors of issuing companies engaged in scheme to inflate the issuers' share price, in violation of the federal securities laws.
Scott-Macon Securities, Inc. v. Zoltek Companies, Inc., 2005 WL 1138476 (S.D.N.Y. 2005), aff'd in part, 2007 WL 2914873 (2d Cir. 2007). Represented plaintiff placement agent in connection with action for breach of agreement pursuant to which plaintiff was to act as exclusive placement agent in connection with placement of equity and/or debt securities of defendant Zoltek. Obtained partial summary judgment as to liability on behalf of plaintiff, and judgment in favor of plaintiff after trial awarding fees and warrants totalling in excess of US$6 million. Affirmed in substantial part by Second Circuit, and remanded for consideration of whether fees and warrants are due on two take-downs of fifth and final placement.
In re Mutual Funds Investment Litigation, 384 F. Supp. 2d 845 (D. Md. 2005). Representing mutual fund management company in class and derivative actions involving allegations of market timing and late trading.
Waldock v. M.J. Select Global, Ltd., 2005 WL 2737502 (N.D. Ill. 2005). Represented hedge fund and its principals in securities fraud lawsuit. Obtained dismissal with prejudice of all claims against them.
Keeney v. Larkin, 306 F. Supp. 2d 522 (D. Md. 2003), aff'd, Fed. Sec. L. Rep. 92,868 (4th Cir. 2004). Obtained dismissal of securities fraud claims against Chief Executive Officer and Chief Financial Officer. Affirmed by Fourth Circuit.
Decker v. Yorkton Securities, Inc., 106 Cal. App. 4th 1315 (Ct. App., 1st Dist. 2003). Affirming summary judgment in favor of broker that transferred stolen stock certificates; in deciding issue of first impression under California Commercial Code, appellate court held that, in order to hold broker liable, plaintiff must show that broker had subjective knowledge of a significant probability of an adverse claim.
JPMorgan Chase Bank v. LibertyMutual, et al., 189 F. Supp. 2d 24 (S.D.N.Y. 2002). Represented surety company in this Enron-related litigation during month-long trial; favorably settled prior to jury deliberations.
Gannon v. Continental Insurance Co., 920 F. Supp. 566 (D.N.J. 1996). Represented corporation and its officers and directors in securities class action. Obtained dismissal of all federal claims. Derivative claims were remanded to state court and obtained summary dismissal of all such claims in the Superior Court and an affirmance in the Appellate Division.
Levine et al. v. NL Industries. Inc. 717 F. Supp. 252 and 720 F. Supp. 305 (S.D.N.Y.), aff'd, 926 F.2d 199 (2d Cir. 1991). Represented public company in securities class action arising out of, inter alia, alleged misrepresentations made by company in press releases concerning prospects for oil field services business. Obtained summary dismissal of all claims in the District Court and affirmance in the Second Circuit Court of Appeals.
In re National Smelting of New Jersey. Inc. Bondholders Litigation, 695 F. Supp. 796 (D.N.J. 1988). Represented public company in securities class action relating to sale of plant by company; proceeds of bond offering were used by buyer to finance the purchase. Obtained summary dismissal of all claims against company.

Representative Matters

Fairfax Financial Holdings Limited v. S.A.C. Capital Management, LLC, et al. , Docket No. L-2032-06 (N.J. Superior Court, Morris County). Representing hedge fund defendant against, among others, claims alleging violations of the New Jersey Racketeer Influenced and Corrupt Organization Act related to short selling of Fairfax stock.
In re Initial Public Offering Securities Litigation, 21 MC 92 (SAS). Represented underwriter in 67 of 310 consolidated actions in the US District Court for the Southern District of New York alleging that IPO underwriters, IPO issuers and individual officers and directors of issuing companies engaged in scheme to inflate the issuers' share price, in violation of the federal securities laws.
Scott-Macon Securities, Inc. v. Zoltek Companies, Inc., 2005 WL 1138476 (S.D.N.Y. 2005), aff'd in part, 2007 WL 2914873 (2d Cir. 2007). Represented plaintiff placement agent in connection with action for breach of agreement pursuant to which plaintiff was to act as exclusive placement agent in connection with placement of equity and/or debt securities of defendant Zoltek. Obtained partial summary judgment as to liability on behalf of plaintiff, and judgment in favor of plaintiff after trial awarding fees and warrants totalling in excess of $6 million. Affirmed in substantial part by Second Circuit, and remanded for consideration of whether fees and warrants are due on two take-downs of fifth and final placement.
In re Mutual Funds Investment Litigation, 384 F. Supp. 2d 845 (D. Md. 2005). Representing mutual fund management company in class and derivative actions involving allegations of market timing and late trading.
Waldock v. M.J. Select Global, Ltd., 2005 WL 2737502 (N.D. Ill. 2005). Represented hedge fund and its principals in securities fraud lawsuit. Obtained dismissal with prejudice of all claims against them.
Keeney v. Larkin, 306 F. Supp. 2d 522 (D. Md. 2003), aff'd, Fed. Sec. L. Rep. 92,868 (4th Cir. 2004). Obtained dismissal of securities fraud claims against Chief Executive Officer and Chief Financial Officer. Affirmed by Fourth Circuit.
Decker v. Yorkton Securities, Inc., 106 Cal. App. 4th 1315 (Ct. App., 1st Dist. 2003). Affirming summary judgment in favor of broker that transferred stolen stock certificates; in deciding issue of first impression under California Commercial Code, appellate court held that, in order to hold broker liable, plaintiff must show that broker had subjective knowledge of a significant probability of an adverse claim.
JPMorgan Chase Bank v. LibertyMutual, et al., 189 F. Supp. 2d 24 (S.D.N.Y. 2002). Represented surety company in this Enron-related litigation during month-long trial; favorably settled prior to jury deliberations.
Gannon v. Continental Insurance Co., 920 F. Supp. 566 (D.N.J. 1996). Represented corporation and its officers and directors in securities class action. Obtained dismissal of all federal claims. Derivative claims were remanded to state court and obtained summary dismissal of all such claims in the Superior Court and an affirmance in the Appellate Division.
Levine et al. v. NL Industries. Inc. 717 F. Supp. 252 and 720 F. Supp. 305 (S.D.N.Y.), aff'd, 926 F.2d 199 (2d Cir. 1991). Represented public company in securities class action arising out of, inter alia, alleged misrepresentations made by company in press releases concerning prospects for oil field services business. Obtained summary dismissal of all claims in the District Court and affirmance in the Second Circuit Court of Appeals.
In re National Smelting of New Jersey. Inc. Bondholders Litigation, 695 F. Supp. 796 (D.N.J. 1988). Represented public company in securities class action relating to sale of plant by company; proceeds of bond offering were used by buyer to finance the purchase. Obtained summary dismissal of all claims against company.

Rankings

Chambers USA: America's Leading Lawyers for Business 2010 for Litigation: Securities

New York Super Lawyers 2006, 2007, 2008 & 2009 for Business Litigation and Securities Litigation

The Legal 500 US, Volume 1: Corporate & Finance 2007 for Investment Funds: Alternative/Hedge Fund Formation

Professional and Community Activities

Professional Activity

President-Elect, New York County Lawyers' Association (NYCLA)
President, NYCLA Foundation
Member, NYCLA Executive Committee
Past Chair, NYCLA Committee on the Federal Courts
Member, NYCLA Task Force on Judicial Independence
Chair, Litigation Committee, New York City Bar
Member, House of Delegates, New York State Bar Association (NYSBA)
Member, NYSBA Nominating Committee
Past Chair, NYSBA Committee on Federal Legislation
Member, Federal Bar Council
Member, Lawyers Committee, National Center for State Courts
Member, New York American Inn of Court
Mediator, US District Court for the Southern District of New York

Books

Stewart D. Aaron. "Ethical Issues in Commercial Cases." Author of Chapter 58 in Commercial Litigation in New York State Courts, Second Edition (Robert L. Haig ed.) (West & NYCLA 2009).

Articles

Stewart D. Aaron and Cara Peterman. "Rule 10b-5 Liability of Secondary Actors: Second Circuit Rejects Creator Theory and Adopts Attribution Requirement in Pacific Investment Management Co. v. Mayer Brown." (PDF: 79 kB) Bloomberg's Securities Law Report, Vol. 4, No. 26, July 2010.

Stewart D. Aaron and Lauren R. Bittman. "Proposed Investor Protection Act Could Clarify Reach of U.S. Securities Laws." March 2010.

Stewart D. Aaron and Marcus A. Asner. "Second Circuit Rules Computer Hacking May Be "Deceptive" Under Section 10(b) of the Securities Exchange Act of 1934." (PDF: 338 kB) Privacy & Data Security Law Journal 01 Oct. (2009).

Stewart D. Aaron and Laura Weiss Tejeda. "The Realities and Economics of Civil Litigation in Federal Court and Its Impact on Litigation Management." (PDF: 269 kB) Bloomberg's Litigation Law Report, Vol. 2, No. 25, June 23, 2008.

Stewart D. Aaron and Susan L. Shin. "Considerations Surrounding Motions in Limine." (PDF: 282 kB) New York Law Journal April 2, 2007.

Stewart D. Aaron. "Inside The Minds: Securities Litigation." (PDF: 178 kB) Aspatore Books, Publishers of C-Level Business Intelligence, October 2005.