Michael Rugen, a senior member and original co-chair of the firm’s Securities Litigation Practice Group, joined the firm in 1979. He practices complex commercial litigation, with an emphasis on the full range of shareholder litigation and special investigations.

Experience

Mr. Rugen represents corporations, accounting firms, brokerage houses, law firms and individuals in major securities, professional liability and other complex commercial cases.  He also appears frequently before the Securities and Exchange Commission, the Public Company Accounting Oversight Board, and other regulatory agencies. Mr. Rugen has extensive trial and appellate experience, and has handled numerous arbitrations and other forms of alternative dispute resolution. He has represented clients in state and federal courts in California, Hawaii, Washington, Colorado, Pennsylvania, Ohio, New York, New Jersey, West Virginia, Alaska, New Hampshire and Florida. In addition to securities and professional liability cases, he has handled antitrust, lender liability, mismanagement, insurance coverage, government liability, unfair competition, defamation and breach of contract litigation on behalf of clients in the technology, financial services, agricultural, entertainment, publishing, trucking, and real estate industries. Mr. Rugen has an active pro bono practice and is a member of several non-profit boards.

Representative Engagements

• In re Luminent Mortgage Capital Securities and Derivative Cases.  Represents mortgage investment company and its officers and directors in federal securities class action and state derivative litigation, arising out of alleged failure to disclose risks inherent in its mortgage-backed securities investments.
• Subprime-Related Engagements.  Represents individual officers and directors in connection with securities class actions, derivative actions and governmental investigations, relating to losses suffered by various companies in connection with mortgage lending and investments in mortgage-backed securities.
• Errett, et al. v. The Olivia Companies.  Represents minority shareholders in lawsuit against corporation and majority owner, seeking repurchase of clients’ minority shares plus damages for wrongful termination, breach of fiduciary duty and defamation.
• In re AOL Time Warner Securities Litigation.  Represented Big Four account firm in federal class action, as well as related actions brought by large pension funds in six different states, arising out of allegedly fraudulent accounting by AOL, prior to and after its merger with Time Warner.
• In re Cisco Systems Securities Litigation.  Represented Big Four accounting firm in federal securities class action arising out of Cisco's allegedly fraudulent accounting in 2000 and 2001.   
• In re Skillsoft/Smartforce Securities Litigation.  Represented Irish affiliate of Big Four accounting firm in two class actions arising out of allegedly fraudulent accounting by Irish software manufacturer.
• Special Investigations.  Has conducted numerous independent investigations for  special committees of boards of directors, where  clients had reason to suspect securities fraud or other significant wrongdoing by senior management.  Investigated charges, advised directors regarding their legal obligations and those of the corporations, negotiated with relevant governmental authorities, and advised on defense of subsequent civil lawsuits.
• SEC Investigations.   Has represented accounting firms, corporations and individuals in defending against numerous Securities and Exchange Commission investigations and proceedings.  In several cases, convinced the Commission staff not to proceed against Heller Ehrman’s clients after the branch office had recommended a proceeding.
• Louis Vuitton Moët Hennessey, Inc. v. Miami Cruise Holdings.  Represented world’s largest distributor of luxury goods and services in arbitration and related lawsuit arising out of misrepresentations made by sellers during client’s purchase of cruiseline business.
• Allen T. Gilliland Trust, et al. v. MobileMedia Partners.  After winning several significant motions in limine on day before trial, convinced plaintiffs to drop their $100 million misrepresentation claims against Big Four accounting firm with no settlement payment of any sort.
• In re Informix Corporation Securities and Derivative Litigation.  Represented Big Four accounting firm in what was, at the time, the largest securities class action ever filed on the West Coast, as well as in related derivative litigation and SEC investigation.
• Standun v. Ernst & Young LLP.  Obtained jury verdict on behalf of Big Four accounting firm, then convinced California Court of Appeal to affirm.
• Stull v. Bank of America.  Represented Bank of America in scores of coordinated suits brought by various governmental and private plaintiffs, alleging that bank had wrongfully withheld several billion dollars of unclaimed funds that should have escheated to state.
• National Medical Transportation Network v. Deloitte & Touche, 62 Cal.App.4th 412, 72 Cal.Rptr.2d 720 (1998). Convinced California Court of Appeal to reverse $20 million jury verdict against Big Four accounting firm, which had been represented by another law firm at trial.
• In re Coeur d’Alene Mining Co. Securities Litigation.  Obtained the first dismissal of a complaint against a national accounting firm under Private Securities Litigation Reform Act.
• Lee v. Lloyds.   Retained by all Big Four accounting firms to submit amicus brief in highly publicized lawsuit brought by State of California against Lloyds of London.
• CUFS v. Grant Thornton, et al.  Obtained defense verdict after five-week professional malpractice trial, then filed and obtained significant settlement in fraud and negligent misrepresentation claim against plaintiff’s parent company.
• In re Oracle Corporation Securities Litigation.   Represented Chairman of Board of Oracle in securities and derivative suits, as well as in related SEC investigation.
• McGonigle v. Combs, 968 F.2d 810 (9th Cir. 1992).  Established that loss causation is an element of all 10b-5 claims in the Ninth Circuit.
• In re Spendthrift Farms Securities Litigation. Obtained directed verdict for law firm client after fifth week of jury trial, and convinced Ninth Circuit to affirm.
• Hayes v. Arthur Young & Company, 34 F.3d 1072, 1194 WL 463493 (9th Cir. 1994). Convinced Ninth Circuit to reverse jury verdict entered against client.
• Above Software v. KPMG Peat Marwick.  Convinced plaintiffs to dismiss Big Four accounting firm with prejudice shortly before trial, without any settlement payment.
  

Publications

• Stoneridge and Enron — Are Secondary Actors Free From Liability for Securities Fraud?  Securities Litigation & Regulation, Thomson/West, Vol. 13, Issue 20  02.6.2008
• Supreme Court Rejects Scheme Liability Claim Against Issuer’s Commercial Partners  Securities Law 360  01.17.2008
• Stoneridge: What Does It Mean?  Securities Law360  01.16.2008
• The Case For Independent Counsel  Directorship Magazine (February/March 2008)  

Speaking Engagements

• Anatomy of Subprime Litigation: It’s The Economy!, Michael Rugen, Daniel Dunne, Leo Batalov (Private presentation to various groups, 2008)
  
• Humanizing the Corporate Defendant, Association of Business Trial Lawyers Annual Seminar (September 25, 2008)