Sidley’s representation of Charles Schwab in Crago v. Charles Schwab & Co., Inc. et al. has been named a 2021 “Top Defense Verdict” by Daily Journal. This special supplement showcases the most significant verdicts, defense results, and appellate reversals in California in 2021.
Following Michael Lewis’s best-selling book Flash Boys: A Wall Street Revolt, plaintiffs commenced litigation in 2016, alleging that Charles Schwab failed to seek best execution on customers’ stock orders. The complaint asserted violations of federal securities laws. This action was closely watched, as it concerned Schwab’s processes for routing customer orders of all U.S. publicly traded stocks during a nearly four-year period, and whether Schwab’s processes and disclosures resulted in harm to individual orders. On behalf of Schwab, Sidley opposed plaintiffs’ motion for class certification, arguing that plaintiffs’ claims required individualized inquiry, rendering them incapable of class treatment. The district court agreed with Sidley’s position, denying plaintiffs’ motion. Plaintiffs filed a motion for leave to appeal, which was denied by the U.S. Court of Appeals for the Ninth Circuit on January 20, 2022.
The Sidley team was led by partners Alex J. Kaplan and Eamon P. Joyce and counsel Jon Muenz.