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Irell & Manella LLP has an experienced group of approximately 30 attorneys who specialize in litigation of securities law and corporate law claims.  Our group has the experience to represent any company, individual, or group of individuals in connection with asserting or defending any type of claim in this field, whether asserted by a private litigant, the plaintiffs’ class action bar, a regulatory agency (such as the Securities and Exchange Commission or a state Department of Corporations), United States Attorney’s Office or other prosecuting agency, or any combination thereof.  Our group includes four attorneys who were named among the Top 100 most influential attorneys in California by the Los Angeles Daily Journal; a former United States District Court Judge; several former Assistant United States Attorneys (including a prominent member of the Enron Task Force); and several "Super Lawyers" in securities litigation as recognized by Los Angeles Magazine.

We have represented clients in cases spanning virtually every segment of the United States economy, including semiconductors, mortgage banking, telecommunications, high-technology equipment, software, e-commerce, cable television, entertainment, consumer electronics, health care, investment banking, financial services, aerospace, government contracting, insurance, home building, automobiles, restaurants, apparel, utilities, gaming and pharmaceuticals.  Our practice encompasses private litigation, including class action lawsuits, arising from federal and state securities laws; shareholder derivative and corporate governance litigation; mergers and acquisitions litigation; representation of companies and individuals in connection with inquiries, subpoenas, and investigations commenced by regulatory agencies or prosecuting authorities; internal corporate investigations and representation of special litigation committees; and advice and counseling in connection with directors and officers insurance issues.

Our depth of experience in this area of the law allows us to tailor our approach to each case to achieve our clients’ objectives in a cost-effective manner.  We recognize that every case is different, and we pride ourselves on applying the careful factual and legal analysis that is required to determine the best course of action given the circumstances of a particular situation.  The hallmark of our practice in the area, and a source of pride for the firm, has been our ability to deliver creative solutions to these often complex, high-stakes matters.  At the same time, because of the depth of our securities litigation practice, we have databases of cases and briefs that allow us to draw on the experiences of the group and thereby enhance the efficiency of our services.  And while our expertise allows us to staff matters with a comparatively lean team, in high-stakes, “bet the company” cases – which are common in this field – we have the resources and the know-how to prepare and implement a world-class defense on a nationwide basis.

Representative of recent and ongoing matters we have handled in this field are the following:

Countrywide.  We represent the former Chairman and Chief Executive Officer of Countrywide Financial Corporation in a series of shareholder and regulatory lawsuits arising from losses suffered in the mortgage banking industry.  Our representation includes separate class action litigation by former Countrywide shareholders and by Countrywide bondholders, shareholder derivative lawsuits involving Countrywide, Fannie Mae and Freddie Mac, various regulatory proceedings (including unfair lending practices claims by state Attorneys General), and consumer unfair lending litigation.

Options Backdating Cases.  We have had a leading role in several of the highest profile and most complex matters arising from alleged stock options backdating, representing both issuers and individual directors and officers in connection with corporate investigations, shareholder lawsuits, and government investigations by the Securities and Exchange Commission or the Department of Justice.  Included among our clients in this area are Broadcom Corporation, which had the largest financial restatement relating to stock option grants in the country, and the former Chairman and Chief Executive Officer of Maxim Corporation.  In addition, we have represented a number of issuers and Board committees regarding stock option granting practices. 

Kline Hawkes California SBOC, L.P., et al. v. Bill Gross, et al.. We achieved a complete victory at the pleading stage of all claims against our client, Idealab, in this $725 million action.  Before the collapse of the high technology sector of the US economy, Idealab, an “incubator” of high technology companies, raised $1 billion from private investors, including Dell USA, L.P., T. Rowe Price Science & Technology Fund, Travelers Insurance Group and the William Morris Agency.  Following the market collapse, a group of these investors filed a lawsuit claiming that changed circumstances in the high tech industry meant that Idealab should refund its remaining liquid assets to its investors.  This case was closely watched in the venture capital industry where the plaintiffs’ legal theory could have had wide-ranging implications.  Over the course of several demurrers, we obtained dismissals without leave to amend of all substantive claims against Idealab and our individual clients, the company’s outside directors.  Reporting on the trial court’s decision, the Los Angeles Times said that “a state judge . . . gutted a fraud lawsuit filed by investors who had hoped to dissolve Idealab Inc., a Pasadena firm set up to spawn Internet companies.”  A stock repurchase and settlement followed.

In re Broadcom Corp. Securities Litigation.  Following a string of pre-trial victories that included partial summary judgment and a ruling excluding substantial portions of the plaintiffs' damages testimony, we successfully settled a claimed $5.6 billion securities class action, for a company contribution of less that 2% of the claimed damages.

In re Metricom Securities Litigation.  We represented a venture finance investor and one of its representatives who served as a director of Metricom, Inc., a failed wireless telecommunication network operator, in consolidated shareholder class actions and in related creditor litigation.  In both cases, the plaintiffs alleged that Metricom issued overly optimistic statements about its prospects, and omitted negative details about certain of its contractual relationships.  We successfully moved to dismiss with prejudice all claims against our clients in both cases.  The creditors did not appeal the dismissal.  In the stockholder class action, after briefing and oral argument, the United States Court of Appeals for the Ninth Circuit affirmed the dismissal on all grounds.