Michael D. Celio

Cases of Note

San Mateo School Districts v. San Mateo County: We represented San Mateo County and its former treasurer against a $20 million suit brought by a group of San Mateo County school districts. Following the 2008 Lehman Brothers bankruptcy—in the midst of the nationwide financial crisis—plaintiffs filed suit against the County, alleging officials violated their fiduciary duties by investing too heavily in Lehman holdings. However we convinced a San Francisco Superior Court judge to dismiss the case on the grounds that the complaint failed to comply with state and county laws governing lawsuits against public entities.

United States v. Stock Analyst: We secured a successful plea agreement for our client, a former hedge fund analyst, who admitted to insider trading. In exchange for his cooperation in a major FBI investigation, we convinced the judge to sentence our client to two years probation.

Plaintiff v. Intuitive Surgical, Inc.: We defended Intuitive Surgical, Inc., a leading manufacturer of cutting-edge robotic surgery devices, from a securities class action. Plaintiffs alleged that Intuitive Surgical issued false and misleading statements regarding the company's financial results and prospects, when during the economic crisis of 2008, its financial results did not meet previously announced predictions. Plaintiffs’ lawyers filed a securities class action, which U.S. District Judge Lucy H. Koh dismissed with leave to amend. In a recent written opinion, Judge Koh agreed with each of our arguments, and dismissed the class action for the second time, this time with prejudice.

United States v. Former Chief Executive Officer: We represented the former CEO of a public company in a criminal stock options backdating trial. Following a six-week trial in Los Angeles federal court, jurors acquitted our client on 16 of 20 counts. A federal judge then threw out one of two mail fraud counts. Despite the government's recommendation of a six year prison term, our client only received eight months of home confinement and a fine.

Plaintiffs v. Electronic Arts Inc.: We represented Electronic Arts, its officers and directors in parallel class actions and derivative lawsuits alleging securities fraud. After we won a motion to dismiss, the plaintiffs in all pending cases voluntarily dismissed their claims.

Securities and Exchange Commission v. Former Chief Financial Officer: We defended the former chief financial officer of a San Francisco-based hedge fund firm against charges of insider trading. The case was part of the government’s push to make insider trading the focus of financial fraud prosecution. The Securities and Exchange Commission named our client and several others in a civil suit, alleging they made more than $8 million trading on stocks based on insider tips. We knocked out half of the case on summary judgment and settled the remainder on very favorable terms.

Securities and Exchange Commission v. Former Executive: We represented the former controller of a failed online bank in a securities fraud action brought by the Securities and Exchange Commission. The case was settled on favorable terms.

United States v. Computer Programmer: We represented a Russian computer programmer arrested in the U.S. for allegedly violating the Digital Millennium Copyright Act. He was the first person to be charged under the criminal provisions of that statute.

United States v. Michael Shanahan Jr.: In a criminal options backdating case, we secured a dismissal before trial for Michael Shanahan Jr., who served on Engineered Support Systems Inc.'s board of directors and was a member of the company's compensation committee. We also represented him in a parallel options backdating action brought by the Securities and Exchange Commission. After eight days of trial testimony, a federal judge in Missouri granted our motion for judgment as a matter of law.