Declaration Of Helen J. Hodges In Support Of Lead Counsel's ...

gathered and which the banks and Enron had. While we used Batson’s evidence to streamline our
depositions, we didn’t stop there. We gathered evidence far beyond what Batson had from the
banks, from third parties such as the rating agencies and stock analysts, and most notably, from
Andrew Fastow (“Fastow”). Finally, it should be noted that the non-settling banks moved to exclude
Batson’s reports from our trial. Thus, while we reviewed Batson’s evidence, we went far beyond it
and were ready to prove our case.
9. As the case neared trial, the non-settling bank defendants, including Merrill Lynch,
Credit Suisse First Boston (“CSFB”), Barclays Bank (“Barclays”), Royal Bank of Scotland (“RBS”),
Toronto Dominion Bank (“TD”) and Royal Bank of Canada (“RBC”), continued to vigorously
defend the case. In the face of expanding adverse Fifth Circuit class certification precedents,
Coughlin Stoia assembled an overwhelming showing in favor of certification of the large multi-year
fraud class. The showing included expert testimony, a multi-day evidentiary hearing and a detailed
trial plan. The Court found the trial plan “presents an orderly and methodical approach for trying the
alleged overarching scheme, arising from a common nucleus of fact and common course of conduct,
to misrepresent Enron’s financial status, fool credit rating agencies, and deceive investors.” In re
Enron Corp. Sec. Litig., 236 F.R.D. 313, 316 (S.D. Tex. 2006). After the Court considered this
voluminous information, it ruled in favor of class certification. In preparing the case for trial,
Coughlin Stoia also fully briefed several large and complex summary judgment motions from the
non-settling bank defendants, while defeating the motions to dismiss pursued by RBC.
10. After securing class certification and filing hundreds of pages of briefs in opposition
to the non-settling banks’ summary judgment motions, the case was virtually trial ready as to Merrill
Lynch, CSFB and Barclays. In the early months of 2007, the Coughlin Stoia litigation team was just
weeks away from trial. We filed the joint pretrial order, including witness and exhibits lists and
motions in limine. Then, however, a two-member majority of a Fifth Circuit Court of Appeals panel
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