He joined Stanford's faculty in 1990 after having served for more than four years as a Commissioner of the United States Securities and Exchange Commission, a position to which he was appointed by President Ronald Reagan.

Prior to joining the SEC, Grundfest served as counsel and senior economist for legal and regulatory matters at the President’s Council of Economic Advisors.

In 1996, Grundfest co-founded Financial Engines (NASDAQ: FNGN) with Stanford Professor William F. Sharpe and Silicon Valley lawyer Craig W.

Grundfest is chairman of the board nominating committee of the NASDAQ Stock Market, and was formerly a director of Oracle Corporation.

[7] At the onset of the litigation SEC and Bank of America Corporation filed with the Court a proposed settlement for $33 million.

Defendants filed appeal with the Delaware Supreme court, supported by Grundfest's detailed paper, and were successful.