The Regents - University of California | Office of The President

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and sufficiently large to be an example to others, and to deter plaintiffs and others
from engaging in similar conduct in the future.
WHEREFORE, Plaintiff prays for relief as set forth below.
FOURTH CAUSE OF ACTION
(Against All Defendants)
BREACH OF FIDUCIARY DUTY
278. Plaintiff hereby incorporates each of the foregoing paragraphs.
279. By virtue of Plaintiff’s ownership of the stock that are the subject of
this Complaint, the Defendants, and each of them, owed fiduciary duties of the
highest good faith, integrity and fair dealing to Plaintiff as owners of the stock,
and each of them, further owed fiduciary obligations to Plaintiff as Defendants
sought to induce and did induce Plaintiff to purchase the stock.
280. Defendants and each of them, had insider knowledge of adverse nonpublic
information regarding the stock as alleged above. Defendants knowingly
and intentionally concealed this adverse non-public information from the Plaintiff.
281. Defendants, and each of them, breached and violated their fiduciary
obligations to Plaintiff, to the detriment of Plaintiff, by failing to disclose all
material information known to defendants at the time that Plaintiff purchased the
stock, and by making the above-mentioned misrepresentations to induce Plaintiff
to purchase the stock.
282. As set forth above, WorldCom engaged in one of the largest financial
frauds in history. Defendants knew that WorldCom was engaged in the conduct,
that such conduct constituted a fraud and that WorldCom was breaching its
fiduciary duty to its shareholders. Notwithstanding their knowledge of the
improper and unlawful conduct, Defendants, and each of them, engaged in
conduct, hereinbefore described which rendered substantial assistance to,
encouraged and/or aided and abetted the breach of fiduciary duty.
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COMPLAINT