Skip to Main Content

Stacey M. Kaplan

Partner

D   415.400.3010
F   415.400.3001

Stacey M. Kaplan, a partner in the Firm’s San Francisco office, concentrates her practice in the area of complex securities litigation. 

Stacey has represented individual and institutional investors in a variety of securities class actions in which the Firm has served as Lead or Co-Lead Counsel, and has contributed to the recovery of hundreds of millions of dollars on behalf of defrauded investors.  

Community Involvement

Stacey served on a team of attorneys representing the Unitarian Universalist Association, General Synod of the United Church of Christ, Pacific Association of Reform Rabbis, Progressive Jewish Alliance, California Council of Churches, and other religious organizations, as amici curiae, challenging the validity of Proposition 8, a constitutional amendment prohibiting same-sex marriage.  More recently, Stacey represented the California Council of Churches, California Faith for Equality, Unitarian Universalist Justice Ministry California, Northern California Nevada Conference, United Church of Christ, Southern California Conference, United Church of Christ, Pacific Association of Reform Rabbis, and California Network of Metropolitan Community Churches, as amici curiae, arguing to the United States Supreme Court that civil marriage is a civil right that cannot be withheld from same-sex couples.

Awards/Rankings

  • Lawdragon 500 Leading Plaintiff Financial Lawyer, 2019-2021
  • Judicial Extern for the Honorable Terry J. Hatter, Jr., United States District Court, Central District of California
Experience

Current Cases

  • CASE CAPTION  In re Lucid Group, Inc. Sec. Litig.
    COURT United States District Court for the Northern District of California
    CASE NUMBER 3:22-cv-02094-JD
    JUDGE Honorable James Donato 
    PLAINTIFF Sjunde AP-Fonden (“AP7”)
    DEFENDANTS Lucid Group, Inc., Peter Rawlinson, and Sherry House
    CLASS PERIOD November 15, 2021 to August 3, 2022, inclusive

    Defendant Lucid designs, produces, and sells luxury EVs. This securities fraud class action arises out of Defendants’ misrepresentations and omissions regarding Lucid’s production of its only commercially-available electronic vehicle (“EV”), the Lucid Air, and the factors impacting that production.  

    To start the Class Period, on November 15, 2021, Defendants told investors that Lucid would produce 20,000 Lucid Airs in 2022. This was false, and Defendants knew it. According to numerous former Lucid employees, Defendants already knew then that Lucid would produce less than 10,000 units in 2022, and admitted this fact during internal meetings preceding the Class Period.  They also knew why Lucid could not meet this production target—the Company was suffering from its own unique and severe problems that were stalling production of the Lucid Air, including internal logistics issues, design flaws, and the key drivers of parts shortages.  These problems had not only prevented, but continued to prevent Lucid from ramping up production of the Lucid Air.  

    Despite the actual state of affairs at Lucid, on November 15, 2021, and at all times thereafter during the Class Period, Defendants concealed these severe, internal, Company-specific problems. At every turn, when asked about the pace of production, or to explain the factors causing Lucid’s production delays, Defendants blamed the Company’s woes on the purported impact of external, industrywide supply chain problems and repeatedly assured investors that the Company was “mitigating” that global impact. These misrepresentations left investors with a materially false and misleading impression about Lucid’s actual production and internal ability and readiness to mass produce its vehicles. Against that backdrop, Defendants then lied, time and again, about the number of vehicles Lucid would produce. Even when, in February 2022, Defendants announced a reduced production target of 12,000 to 14,000 units, they continued to point to purported industry-wide supply chain problems and once more assured the market that the Company was thriving in spite of such issues. When the truth regarding Lucid’s false claims about its production and the factors impacting that production finally emerged, Lucid’s stock price cratered, causing massive losses for investors.

    On December 13, 2022, Plaintiffs filed a 138-page consolidated complaint on behalf of a putative class of investors alleging that Defendants Lucid, Rawlinson, and House violated 10(b) and 20(a) of the Securities Exchange Act. On February 23, 2023, Defendants filed a motion to dismiss. Briefing on that motion was completed in June 2023.  The Court will hear oral argument in August 2023. 

  • CASE CAPTION             SEB Investment Management AB, et al. v. Wells Fargo & Co., et al.
    COURT United States District Court for the Northern District of California
    CASE NUMBER 3:22-cv-03811-TLT
    JUDGE Honorable Trina L. Thompson
    PLAINTIFF SEB Investment Management AB; West Palm Beach Firefighters’ Pension Fund
    DEFENDANTS Wells Fargo & Company, Charles W. Scharf, Kleber R. Santos, and Carly Sanchez
    CLASS PERIOD February 24, 2021 to June 9, 2022, inclusive

    This securities fraud class action arises out of Wells Fargo’s misrepresentations and omissions regarding its diversity hiring initiative, the Diverse Search Requirement. According to Wells Fargo, the Diverse Search Requirement mandated that for virtually all United States job openings at Wells Fargo that paid $100,000 a year or more, at least half of the candidates interviewed for an open position had to be diverse (which included underrepresented racial or ethnic groups, women, veterans, LGBTQ individuals, and those with disabilities).

    Throughout the Class Period, Defendants repeatedly lauded the Diverse Search Requirement to the market. In reality, however, Wells Fargo was conducting “fake” interviews of diverse candidates simply to allow the Company to claim compliance with the Diverse Search Requirement. Specifically, Wells Fargo was conducting interviews with diverse candidates for jobs where another candidate had already been selected. These fake interviews were widespread, occurring across many of Wells Fargo’s business lines prior to and throughout the Class Period. When the relevant truth concealed by Defendants’ false and misleading statements was revealed on June 9, 2022, the Company’s stock price declined significantly, causing significant losses to investors.

    On January 31, 2023, Plaintiffs filed a complaint on behalf of a putative class of investors alleging that Defendants Wells Fargo, Scharf, Santos, and Sanchez violated Section 10(b) of the Securities Exchange Act of 1934. In addition, the complaint alleged that Scharf, as CEO of Wells Fargo, violated Section 20(a) of the Securities Exchange Act of 1934. Defendants filed a motion to dismiss on April 3, 2023. Briefing on that motion is set to conclude on July 17, 2023.

    Read the Class Action Complaint for Violations of the Federal Securities Laws Here

Landmark Results

  • Allergan stockholders alleged that in February 2014, Valeant tipped Pershing Square founder Bill Ackman about its plan to launch a hostile bid for Allergan. Armed with this nonpublic information, Pershing then bought 29 million shares of stock from unsuspecting investors, who were unaware of the takeover bid that Valeant was preparing in concert with the hedge fund. When Valeant publicized its bid in April 2014, Allergan stock shot up by $20 per share, earning Pershing $1 billion in profits in a single day.

    Valeant’s bid spawned a bidding war for Allergan. The company was eventually sold to Actavis PLC for approximately $66 billion.

    Stockholders filed suit in 2014 in federal court in the Central District of California, where Judge David O. Carter presided over the case. Judge Carter appointed the Iowa Public Employees Retirement System (“Iowa”) and the State Teachers Retirement System of Ohio (“Ohio”) as lead plaintiffs, and appointed Kessler Topaz Meltzer & Check, LLP and Bernstein Litowitz Berger & Grossmann, LLP as lead counsel.

    The court denied motions to dismiss the litigation in 2015 and 2016, and in 2017 certified a class of Allergan investors who sold common stock during the period when Pershing was buying.

    Earlier in December, the Court held a four-day hearing on dueling motions for summary judgment, with investors arguing that the Court should enter a liability judgment against Defendants, and Defendants arguing that the Court should throw out the case. A ruling was expected on those motions within coming days.

    The settlement reached resolves both the certified stockholder class action, which was set for trial on February 26, 2018, and the action brought on behalf of investors who traded in Allergan derivative instruments. Defendants are paying $250 million to resolve the certified common stock class action, and an additional $40 million to resolve the derivative case.

    Lee Rudy, a partner at Kessler Topaz and co-lead counsel for the common stock class, commented: “This settlement not only forces Valeant and Pershing to pay back hundreds of millions of dollars, it strikes a blow for the little guy who often believes, with good reason, that the stock market is rigged by more sophisticated players. Although we were fully prepared to present our case to a jury at trial, a pre-trial settlement guarantees significant relief to our class of investors who played by the rules.”

  • After over five years of hard-fought litigation, on February 19, 2020, Judge Michael M. Anello of the U.S. District Court for the Southern District of California granted preliminary approval of a class action settlement brought on behalf of SeaWorld Entertainment, Inc. shareholders.  Since December 2014, Kessler Topaz has served as co-lead counsel in the litigation. 

    The case alleges that SeaWorld and its former executives issued materially false and misleading statements during the Class Period about the impact on SeaWorld’s business of Blackfish, a highly publicized documentary film released in 2013, in violation of Section 10(b) of the Exchange Act of 1934.  Defendants repeatedly told the market that the film and its related negative publicity were not affecting SeaWorld’s attendance or business at all.  When the underlying truth of Blackfish’s impact on the business finally came to light in August 2014, SeaWorld’s stock price lost approximately 33% of its value in one day, causing substantial losses to class members.

    In April 2019, after the close of fact and expert discovery, Defendants moved for summary judgment on all claims—their last and best opportunity to avoid a jury trial on the Class’s claims through a dispositive motion.  After highly contested briefing and oral argument, in November 2019 the Court held in a 98-page opinion that Plaintiffs had successfully shown that the claims should go to a jury.

    With summary judgment denied and the parties preparing for a February 2020 trial, the parties reached a $65 million cash settlement for SeaWorld’s investors.  

Publications

How a Dissent Produced a Majority Rationale, American Association for Justice, Business Torts Program Annual Conference (2013)