Securities

During periods of economic turmoil, corporations and senior executives are particularly attractive targets for government regulators and private securities plaintiffs. In times like these, experienced legal counsel is invaluable and substantial trial experience is a must. At Keker & Van Nest, we bring our trial skills to every setting in which securities problems arise, from investigations by the Securities and Exchange Commission and the Department of Justice, to class actions and shareholder derivative suits. 

Our expertise covers virtually every aspect of securities law enforcement, including revenue recognition, market timing or late trading, and the recent spate of options backdating investigations . We have handled scores of matters involving traditional areas of securities law enforcement, such as allegations of insider trading, accounting and disclosure fraud, and misbehavior by brokers and other securities professionals.

Recognitions

Chambers ranks Keker & Van Nest as one of the top securities litigation firms in the nation.

In 2010, The American Lawyer named Stuart Gasner Litigator of the Week for his win against the Securities and Exchange Commission in a stock options backdating case.

Legal 500 described the firm as "peopled with a preponderance of outstanding trial lawyers ... the team excels at representing high-level company executives in criminal trials across the waterfront of offenses including securities fraud and insider trading."

Cases of Note

United States v. McGraw-Hill Companies, Inc., et al.: We are defending Standard and Poor's from a $5 billion lawsuit filed by the U.S. government. The government accuses the McGraw Hill Cos Inc. unit of a scheme to defraud investors in mortgage-related securities that collapsed in the financial crisis.

Securities and Exchange Commission v. Executive: The Securities and Exchange Commission launched a securities fraud suit in California federal court against our client, a former vice president of sales. The SEC claimed he grossly inflated his company's revenue in order to raise additional capital from investors. We also defended him in a parallel criminal investigation. We were able to prevent any criminal charges from being filed, and resolved the SEC case for a small penalty.

Plaintiff v. Amyris, Inc.: In this putative securities class action, the plaintiff accused our client, a renewable energy company, of knowingly making false and misleading statements over the production of a chemical used in transportation fuels. After we demonstrated the company was simply mistaken in their projections and its statements provided meaningful cautionary warnings, the judge granted our motion to dismiss.

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. Then in a written opinion, Judge Koh agreed with each of our arguments, and dismissed the class action for the second time, this time with prejudice. Finally, the Ninth Circuit unanimously affirmed the dismissal in a 23-page published opinion.

Securities and Exchange Commission v. Brian Stoker: We defended former Citigroup executive Brian Stoker in one of the rare financial crisis cases to go to trial. Mr. Stoker, who worked on the structuring desk at Citigroup, was charged with securities fraud in connection with Citigroup’s 2007 marketing of a $1 billion collateralized debt obligation (CDO) backed by assets tied to the housing market. In its enforcement action the SEC contended that Citigroup had played a role in the selection of the CDO’s underlying mortgage securities and had taken a short position in those securities. The SEC contended that Mr. Stoker was negligent for not disclosing information about Citigroup’s actions in its marketing materials. After a two-week jury trial in the Southern District of New York with Judge Rakoff presiding, the federal jury rejected the SEC’s case and found Mr. Stoker not liable on any of the SEC’s 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.

United States v. Former Chief Executive Officer: We represented the former CEO of a public company in a criminal investigation, a Securities and Exchange Commission suit, a derivative shareholder suit, a breach of contract suit by our client against his former company, and that company's counterclaim for hundreds of millions. All of these matters were related to the company's historical stock option granting practices. We resolved all of the matters against our client with net payments of more than $10 million to our client.

Securities and Exchange Commission v. Former Chief Financial Officer: We represented a chief financial officer charged in one of the largest criminal securities fraud cases in recent U.S. history. We represented him in the criminal and administrative investigations, as well as in parallel civil litigation. Following pretrial litigation, our client pled guilty and received a six-year prison sentence. Civil litigation was favorably settled.

Securities and Exchange Commission v. Former Chief Financial Officer: We represented the former chief financial officer of a software company against Securities and Exchange Commission allegations of securities fraud in the company’s revenue recognition practices. We secured a dismissal on the eve of trial.

Securities and Exchange Commission v. Software Company Founder and Former Chairman: We represented a multi-billion dollar software company's founder and former chairman of the board in an options backdating investigation. The case was resolved on favorable terms, with no charges filed.

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.

Key Contacts

Stuart Gasner

Stuart Gasner

(415) 676-2209
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Michael D. Celio

Michael D. Celio

(415) 773-6613
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