David Keenan

Senior Associate

Seattle


Read full biography at www.orrick.com
David Keenan is a senior associate in Orrick’s Seattle office.

David currently serves as President of the Federal Bar Association for the Western District of Washington and President of Northwest Justice Project. David’s practice focuses on securities and other complex commercial litigation as well as internal investigations, and he has represented clients in Washington’s superior, appellate and supreme courts, as well as in numerous federal courts, and has argued and won a case before the United States Court of Appeals for the Ninth Circuit. David also devotes a considerable amount of his practice to providing free legal assistance to those in need, particularly in the area of civil rights. In addition, David previously served as a Special Deputy Prosecutor in the Felony Trial Unit of the King County Prosecuting Attorney's Office, where he co-tried multiple felony cases to verdict.

David has been honored by the Washington State Bar Association and Seattle University School of Law for his service to the legal and non-profit communities. He graduated from Seattle University School of Law, summa cum laude, receiving the Dean's Medal for his accomplishments,  an honor he achieved while working full-time as a federal agent and attending law school at night. While in law school, David also served as an associate editor of the Seattle University Law Review.

Prior to joining Orrick, David served in law enforcement as a senior special agent with the federal government, investigating crimes such as human trafficking, money laundering, and identity theft. David also helped investigate things like internet crimes against children and human trafficking. He served as a law enforcement representative to the Western Washington banking community regarding bank secrecy and anti-money laundering issues.

David was also a member of the Financial Intelligence Review Team under the direction of the U.S. Attorney’s Office in Seattle, and has presented on a panel on bank secrecy and suspicious activity reports at the National Advocacy Center.

Outside of work, David is very involved in service to the legal and non-profit communities, serving on six boards and commissions and several committees with a particular focus on at-risk youth and access to justice issues. In addition, David devotes hundreds of hours each year to pro bono work, including in U.S. District Court and before the United States Court of Appeals for the Ninth Circuit.

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Posts by: David Keenan

Will It Be Enough?: SEC Amends Rules to Look More Like Federal Court

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In a move that will make Securities and Exchange Commission administrative proceedings look more like civil litigation in federal court, on July 13, 2016, the SEC announced that it had adopted amendments to its rules of practice.  These rules appear similar to those the Commission proposed last September.  For critics of the amendments, they may not go far enough, but the expanded discovery and clarifications regarding dispositive motion practice may address some of the issues previously raised regarding the Commission’s perceived home-court advantage.

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Full Court Pressure: SEC OIG Finds No Undue Influence By ALJs in Favor of Government

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The Securities and Exchange Commission’s Office of the Inspector General (“OIG”) recently released findings from its extensive investigation into allegations of potential bias against respondents in SEC administrative proceedings.  The OIG report comes at a time when the fairness of the SEC’s in-house administrative forum is under scrutiny from both inside and outside of the agency.

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But Everybody’s Doing It: Delaware Chancery Court Invalidates VAALCO’s “Wacky” Charter and Bylaws Provisions Despite Use by Other Companies

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Ruling from the bench on dueling motions for summary judgment just days before a special meeting of shareholders was to be held, on December 21, 2015, Delaware Vice Chancellor J. Travis Laster invalidated certain provisions in VAALCO Energy, Inc.’s (“VAALCO”) certificate of incorporation and bylaws (the “Charter and Bylaws Provisions”).  The litigation and ruling stem from investor attempts to remove a majority of VAALCO’s Board.  VAALCO argued that the Charter and Bylaws Provisions prevented investors from removing board members without cause.  Vice Chancellor Laster disagreed, holding that these provisions, in purporting to restrict stockholders’ ability to remove directors without cause in the absence of a classified board or cumulative voting provision, violated Delaware corporate law.  The ruling is a cautionary note for a small percentage of Delaware corporations that apparently still have similar provisions on their books.

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To Hall(iburton) and Back: Will Third Time Be a Charm as Fifth Circuit Grants Another Appeal in Halliburton?

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In what is now the third interlocutory appeal in the course of class certification  proceedings spanning more than a decade, the case of Erica P. John Fund, Inc. v. Halliburton Co. will head back to the United States Court of Appeals for the Fifth Circuit, with perhaps another trip to the Supreme Court to follow.  The Fifth Circuit’s eventual decision on this latest interlocutory appeal could clarify—at least in the Fifth Circuit—just how far a defendant in a securities class-action can go in presenting indirect evidence of (a lack of) price impact to defeat class certification.

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Having the Last Word on the Last Word: SEC Says Its ALJs are “Mere Employees”

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In what will surely not be the last word on this continuing controversy, on September 3, 2015, a majority of the members of the Securities and Exchange Commission held that the appointment process for the Commission’s administrative law judges (“ALJ”) does not violate the Constitution.  As we reported just last month, a federal judge in the Southern District of New York preliminarily enjoined a separate SEC administrative proceeding based in part on the judge’s view that the SEC ALJ appointment process is likely unconstitutional.  In light of the key role ALJs play in SEC proceedings and the number of administrative cases brought each year, the question is likely to be addressed at the appellate level and could have significant implications for the securities defense bar.

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Carrying the Halli-burden: District Court Takes Up Price Impact at Class Certification in the Wake of Halliburton v. Erica P. John Fund

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In a lengthy ruling containing a detailed analysis of dueling economic expert reports, a federal court in Texas held on July 25, 2015 that defendant Halliburton Company demonstrated a lack of price impact at the class-certification stage on nearly all of the plaintiffs’ claims, thus rebutting the presumption of reliance.  This action has twice been to the Supreme Court, most recently in Halliburton, Co. v. Erica P. John Fund, Inc., 134 S. Ct. 2398 (2014) (“Halliburton II”), which held that the fraud-on-the-market presumption of reliance may be rebutted by showing a lack of price impact from the alleged misrepresentation.  The district court’s recent decision is significant because it is one of the first to consider the issue of price impact post-Halliburton II, and because the decision suggests that lower courts may be willing to wade deep into the complications of event studies and economic analysis in order to determine price impact at the class-certification stage.

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Is Your Confidentiality Agreement a Ticking Time Bomb? SEC’s First Action Over Dodd-Frank Whistleblower Protections Targets Company’s Internal Investigations

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For the first time in the nearly five years since Dodd-Frank went into effect, the SEC last week took action against a company over concerns that the company was preventing its employees from potentially blowing the whistle on illegal activity.  The action is significant because the SEC was targeting seemingly innocuous language in a confidentiality agreement and there were no allegations that the company, KBR, Inc., was otherwise breaking the law.

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Is Your Bank Stressed Out? OCC Follows Fed on Proposed Stress-Test Changes

On September 10, the Office of the Comptroller of the Currency (“OCC”) published proposed revisions to its information collecting regulations related to the Dodd-Frank Act’s “stress test” for large national banks and federal savings associations.

Section 165(i)(2) of the Act requires certain financial institutions, including national banks and federal savings associations that have at least $10 billion in total consolidated assets (“covered institutions”), to conduct annual “stress tests” and report the findings to the Federal Reserve System and the institution’s primary governing regulatory agency. In July, the Fed proposed changes to its stress test rules, including revisions to almost twenty schedules that must be completed by covered institutions with over $50 billion in total consolidated assets, and changes to the institutions’ filing deadlines. The OCC’s proposed revisions would bring its reporting requirements in line with the Fed’s proposed requirements. READ MORE

SEC Can’t Pass On Pot Stock Puffery

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Corporations facing federal securities suits can sometimes avoid liability by claiming that their forward-looking statements were so vague or indefinite that they could not have affected the company’s stock price and are therefore not material.  Such statements are not actionable because courts consider them “puffing,” famously described by Judge Learned Hand nearly 100 years ago as “talk which no sensible man takes seriously.”  Though we cannot know today what Judge Hand would think of the civil complaint recently filed by the SEC against several marijuana-company stock promoters, it’s safe to say that this isn’t the kind of ‘puffing’ he had in mind.

The defendants in the SEC civil action are all stock promoters, most of whom operate websites where they promote stocks, including microcap or so-called “penny” stocks.  The SEC alleges that the defendants promoted shares in microcap companies related to the marijuana industry. For example, one of the companies, Hemp Inc., claims to be involved with medical marijuana.  According to the SEC, three of the defendants bought and sold more than 40 million shares in Hemp Inc. in order to give the appearance that there was an active market in the company’s stock.  In reality, the transactions allegedly consisted of wash trades and matched orders.  A wash trade occurs when a security is traded between accounts, but with no actual change in beneficial ownership, while a matched order entails coordinating buy and sell orders to create the appearance of trading activity.  As the defendants were allegedly generating trading activity, they were also allegedly promoting the stock on the Internet, touting “a REAL Possible Gain of OVER 2900%” in Hemp Inc. stock.  Wow, that is high.

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Have Your Directors Met Their Revlon Duties? Delaware Court Dismisses Strike-Suit Allegations as Merely Cosmetic

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In a virtual course on how to bring—or not bring—an M&A strike suit, on June 30, a Delaware Chancery Court dismissed all shareholder claims against a merger target and its acquirer, ending nearly two years of litigation.  Though the allegations are familiar in the strike-suit context, the 45-page opinion which this ~$100 million merger yielded is notable for its methodical tour of Delaware fiduciary-duty law, 102(b)(7) exculpatory provisions, and so-called Revlon duties.  The roadmap opinion should be required reading for directors considering a merger.

Defendants Ramtron International and Cypress Semiconductor both work in the technology industry and the two began their courtship in 2011.  Though shareholder-plaintiff Paul Dent couldn’t prevent the 2012 Ramtron-Cypress marriage, he continued to hold out for a better dowry, naming Ramtron’s board and Cypress in a suit alleging that Cypress aided and abetted Ramtron’s board in breaching its duty to shareholders, and seeking quasi-appraisal of his shares.  Vice Chancellor Parsons disposed of these claims, taking the time to explain in unusual detail why the allegations utterly failed. READ MORE