John C. Grugan

Litigation, Insurance, Securities Litigation, White Collar/Investigations

John C. Grugan concentrates his practice on complex commercial litigation, with an emphasis on securities litigation and corporate investigations. Mr. Grugan regularly represents companies and individuals in SEC investigations and enforcement actions, including disclosure and accounting matters and insider trading cases. He also has significant securities litigation experience and has represented numerous public companies and their officers and directors in the defense of securities class actions and derivative actions.

Mr. Grugan also has substantial experience directing internal investigations on behalf of companies, their boards of directors, or committees of those boards. His experience conducting internal investigations ranges from public matters involving claims of embezzlement and fraud to highly sensitive and confidential cases where misconduct by senior management of public companies was alleged. Mr. Grugan is a frequent lecturer on SEC enforcement, conducting effective internal investigations, and directors' and officers' insurance in the context of government investigations.

Mr. Grugan's practice also focuses on complex civil litigation. He has represented companies of all sizes in a wide variety of matters, including False Claims Act litigation, defamation suits, and complex commercial disputes. In addition, he maintains an active insurance practice and regularly represents insurers against claims of bad-faith conduct.

Mr. Grugan is listed in Benchmark Litigation as a "future star" in litigation and was named a "Pennsylvania Super Lawyer" by Law & Politics and Philadelphia magazines.

Before joining Ballard Spahr, Mr. Grugan served as a trial attorney in the U.S. Department of Justice Honor Program, Civil Division. At Ballard, Mr. Grugan is the Philadelphia Hiring Partner.

Recent Representative Matters

SEC Enforcement and Corporate Internal Investigations 

• Regularly represents individuals and companies in SEC investigations and enforcement actions in insider trading cases. 
• Regularly represents companies in SEC investigations relating to disclosures and alleged accounting fraud.
• Represented a college board of directors in the internal investigation of alleged sexual misconduct by a professor. The professor voluntarily dismissed the defamation suit.
  
• Represented the audit committee of a publicly traded industrial pollution control and air-purification company in an SEC investigation relating to revenue recognition manipulation and misappropriation. The SEC did not take any action against the company.
• Represented the audit committee of a publicly traded defense contractor in an internal investigation arising out of a whistleblower's allegations regarding a possible violation of the Foreign Corrupt Practices Act.
• Represented the audit committee of a publicly traded real estate investment trust in an internal investigation relating to "tone at the top," which was alleged to have created a corporate environment in which management required inappropriately aggressive accounting.
• Represented the audit committee of a publicly traded weight-loss and nutrition company in an internal investigation relating to the timing and propriety of a number of stock option grants.

Securities and Complex Civil Litigation

• Represented a publicly traded insurance company and its board of directors in a derivative action arising out of a proposed merger. The shareholder's suit was dismissed. 
• Represented a gold production and exploration company in a series of shareholder suits arising out of a proposed merger.
• Represented a publicly traded insurance company and its board of directors in a derivative action arising out of a proposed merger. After discovery, the shareholder voluntarily dismissed the suit.
  
• Represented an international ship builder with operations in Philadelphia in a lawsuit brought under the federal False Claims Act. After extensive discovery, the plaintiff/relator agreed to voluntarily dismiss her False Claims Act claims.
• Represented an Ivy League medical school in a False Claims Act litigation relating to National Institutes of Health grants. After obtaining partial summary judgment, the relator dismissed his remaining claim. 
• Represented a health system in a class action concerning employment practices; obtained dismissal of all RICO claims.
• Represented an insurer in an insurance "lost policy" case arising out of a malicious prosecution and wrongful imprisonment suit; obtained summary judgment.

Judicial Clerkships

Hon. James McGirr Kelly, U.S. District Court for the Eastern District of Pennsylvania

Professional Activities

American Bar Association

Pennsylvania Bar Association

Philadelphia Bar Association

Criminal Justice Act Panel for the U.S. District Court for the Eastern District of Pennsylvania, past member (2004-2006)

Ballard Spahr's Philadelphia Office Hiring Committee, Partner-in-charge

Ballard Spahr's Diversity Council

Recognition & Accomplishments

Listed in Benchmark Litigation as a "future star" in litigation, 2009-2011

Named a "Pennsylvania Super Lawyer" by Law & Politics and Philadelphia magazines

National Multiple Sclerosis Society, Leadership Honoree, 2005

LEADERSHIP Philadelphia, member, class of 2009

FBI Citizen's Academy participant, 2010 

Publications

Mr. Grugan is the co-editor of the Philadelphia Court of Common Pleas Civil Practice Manual. In addition, he has authored the following:

"Tone at the Top Part II," Metropolitan Corporate Counsel, July 2007

"Tone at the Top," Metropolitan Corporate Counsel, June 2007

"Risk Management For Prospective Outside Directors," Metropolitan Corporate Counsel, June 2006

In addition to his articles for industry and trade publications, Mr. Grugan frequently authors Ballard Spahr Securities and White Collar/Investigations alerts. His most recent alerts follow.

"Whistleblower Incentives, Greater Liability for Defendants Included in Senate's Financial Regulatory Reform Bill," May 18, 2010

Co-author, "Appeals Court Reins in Government on Executive Liability in Quarterly Filings," April 9, 2010

Co-author, "SEC Turns Up Already Bright Spotlight on Municipal Securities," February 19, 2010

"SEC Announces Appointments to Specialized Enforcement Units, Guidelines To Promote Individuals' Cooperation with Investigations," January 13, 2010

"Insurer Required To Provide a Defense to Defendants in Ponzi Scheme Litigation," January 6, 2010

"Eastern District Hands Down Landmark Decision under False Claims Act," December 8, 2009

Co-author, "Appeals Court Reinforces Importance of Proper 'Upjohn' Warnings," October 2, 2009

Co-author, "Division Chief Announces Changes Aimed at Enhancing SEC Enforcement," August 10, 2009

Co-author, "SEC Halts Sixth Alleged Ponzi Scheme Since Madoff," April 2, 2009

Co-author, "Selective Waiver Doctrine Rejected," March 4, 2008

Speaking Engagements

In April 2009, Mr. Grugan was featured in an interview, Compliance Week podcast, discussing delivering proper Upjohn warnings when conducting interviews in internal investigations, and a recent decision highlighting the consequences of failing to deliver those warnings.

Mr. Grugan has spoken at a number of continuing legal education seminars, including: 

"Civil Practice and Procedure in the Philadelphia Court of Common Pleas," June 2011, June 2009

"Managing Risk and Government Enforcement for Early Stage, Virtual, and Cash-Strapped Companies," Pennsylvania Bio, June 2011

"Detecting, Responding to, and Preventing Fraud," American Bar Association, March 2011

"The SEC is Watching: Avoiding Municipal Financing Landmines in a Tight Financial Market," Pennsylvania League of Cities and Municipalities Annual Convention, June 2010

"Conducting Effective Internal Investigations: The Use of Ethical Strategies and the Role of In-House Counsel," Association of Corporate Counsel, May 2010

"Directors & Officers Coverage and Government Enforcement," Pennsylvania Bar Institute, May 2010

"SEC's Focus on Municipal Securities Fraud," Public Employer Labor Relations Advisory Service Annual Conference, March 2010

"Discovery – Where Most Cases are Won or Lost," November 2009 

"Recent Developments under Pennsylvania’s Insurance Bad Faith Statute," PBI's Auto Law Update, October 2009 

"Directors and Officers Insurance Coverage in Internal Investigations," D&O Insurance Update: Emerging Issues and Strategies, July 2009 

"Protecting Privilege, Potential Witness Liability, and Tone at the Top," Conducting Effective Internal Investigations, May 2009

"Recent Examples of Poor Tone at the Top," Tone at the Top: The Ethical Standards Set by Senior Management and How Those Standards, or Lack Thereof, Contribute to Corporate Fraud (CLE), January 2008

In addition, Mr. Grugan has spoken at clients' in-house extra-contractual insurance litigation seminars.

Community Activities

Neighborhood Club (civic association) of Bala Cynwyd (Pennsylvania), President

FBI's Community Partnership Program, member

Board Memberships

Temple Law Alumni Association

St. Joseph's Preparatory School, Board of Governors

Temple University James E. Beasley School of Law (J.D.1998, cum laude)
Editor-in-chief, Temple Law Review; Member, Moot Court Honor Board

University of Pennsylvania (B.A. 1992)

New Jersey

Pennsylvania

U.S. District Court for the District of New Jersey

U.S. District Court for the Eastern District of Pennsylvania

U.S. Court of Appeals for the Third Circuit

U.S. Court of Appeals for the Tenth Circuit