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Jonathan F. Neumann

Counsel

D   484.270.1423
F   610.667.7056

Jonathan F. Neumann, counsel to the Firm, concentrates his practice on securities fraud and fiduciary matters. Jonathan represents sophisticated investors in complex litigation brought under federal and state laws. In this role, Jonathan has litigated many high stakes cases from the pleading stage to the eve of trial, resulting in substantial recoveries for aggrieved investors.

Prior to joining the Firm, Jonathan served as a law clerk to the Hon. Douglas E. Arpert of the United States District Court for the District of New Jersey. While in law school, Jonathan was an editor for the Temple International and Comparative Law Journal and a member of the Moot Court Honor Society.

Experience

Ongoing Cases

  • CASE CAPTION In re Advance Auto Parts, Inc. Securities Litigation
    COURT United States District Court for the District of Delaware
    CASE NUMBER 18-cv-00212-RGA
    JUDGE Honorable Richard G. Andrews
    PLAINTIFF Public Employees’ Retirement System of Mississippi (“MPERS”)
    DEFENDANTS Advance Auto Parts, Inc., Thomas R. Greco, and Thomas Okray
    CLASS PERIOD November 14, 2016 through August 15, 2017, inclusive

    This securities fraud class action case arises out of Defendants’ misrepresentations about their financial forecasts and guidance for fiscal year 2017. As alleged, prior to the Class Period, Defendant Advance Auto Parts struggled with lagging comparable store sales and operating margins. Under a new CEO and CFO (Defendants Thomas Greco and Thomas Okray, respectively), the Company announced an ambitious, optimistic transformation and told the market that it would achieve positive sales and margins in 2017—despite all internal projections continuing to point negative. During the Class Period, Defendants chose to double down and reaffirm their false guidance when presented with opportunities to modify it. When they finally admitted publicly that their promised success would never come to fruition, Defendants caused the Company’s stock price to plummet.

    MPERS filed a 95-page Amended Complaint in January 2019 on behalf of a putative class of investors alleging that the Defendants violated Section 10(b) of the Securities and Exchange Act by making false and misleading statements about the Company’s fiscal year 2017 financial forecasts. In February 2020, Judge Andrews denied the vast majority of Defendants’ motion to dismiss. In November 2020, Judge Andrews certified the class. Defendants sought interlocutory review of the class certification order, but the 3d Circuit Court of Appeals denied review.  Fact discovery is complete, with expert disclosures underway.  The case is set for trial on April 4, 2022.

Representative Outcomes

  • Kessler Topaz represented Lead Plaintiff Sjunde-AP Fonden, one of Sweden’s largest pension funds, in this long-running securities fraud class action before The Honorable Katharine S. Hayden of the United States District Court for the District of New Jersey. The $130 million recovery is the first settlement of a federal securities case arising out of the industrywide generic drug price-fixing scandal which first came to light when Congress launched an investigation into the historic increases in generic drug prices. The price-fixing conspiracy, led by Allergan and several other drug makers, is believed to be the largest domestic pharmaceutical cartel in U.S. history. Shareholders alleged that notwithstanding Allergan’s prominent role in this illicit scheme, the company repeatedly misrepresented to investors that it was not engaged in anticompetitive conduct—even as Allergan became ensnared in an investigation by the U.S. Department of Justice and 46 state attorneys general.

    For four years, a team of Kessler Topaz litigators prosecuted these claims from the initial investigation and drafting of the complaint through full fact discovery and class certification proceedings. On August 6, 2019, Judge Hayden issued a 31-page opinion denying defendants’ motions to dismiss the complaint, sustaining investors’ claims in full, and firmly establishing a shareholder-plaintiff’s ability to pursue securities fraud claims based on the concealment of an underlying antitrust conspiracy. The parties’ settlement was approved by the Court on November 22, 2021, marking a historic recovery for investors and sending a strong message to drug makers engaged in anticompetitive conduct.