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

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DEPONENT NAME DATE OF DEPOSITION DESIGNATING PARTY LOCATION ATTORNEYS PRESENT Gibbons, Michael 05/23/06 Barclays New York Jaime Baskin Gilson, Ronald 04/20/06 Alliance New York James Hail Glazer, Donald 05/23/06 Vinson & Elkins Houston Jerri Hardaway Graves, Frank 05/08/06 Deutsche Bank Houston Shawn Hays Greenspan, Ronald 04/27/06 Barclays Houston Jamie Baskin Haft, Robert 05/16/06-05/17/06 Deutsche Bank NYC Matt Siben Hakala, Scott 05/08/06-05/09/06 Lead Plaintiff Houston Paul Howes Hamada, Robert 05/04/06 CSFB Santa Monica James Hail Hazard, Geoffrey 05/18/06-05/19/06 Vinson & Elkins Houston John Pierce Hill, Claire 04/21/06 Lead Plaintiff Houston John Pierce, Paul Howes, Matt Siben Ide, William 05/23/06-05/24/06 Vinson & Elkins Houston John Lowther Isaac, William 05/10/06 Barclays NYC Xan Bernay Johnson, Larry 05/23/06-05/25/06 CSFB Houston Roger Greenberg Kearns, Chris 05/23/06 Deutsche Bank NYC Anne Box Koniak, Susan 05/15/06-05/16/06 Lead Plaintiff Boston Jerri Hardaway Lacey, John 05/23/06 Alliance Houston James Hail Leisner, Richard 05/10/06 CSFB Houston Shawn Hays Lorsch, Jay 05/11/06-05/12/06 Barclays Houston James Hail McEachern, Stephen 05/17/06-05/19/06 Andersen New York James Jaconette McFadden, Frank 05/03/06-05/04/06 Vinson & Elkins Houston John Pierce Miller, Geoffrey 05/01/06 Barclays Houston John Pierce, Xan Bernay Murovitz, Mark 05/23/06-05/25/06 Barclays Houston James Jaconette Myers, Stewart 05/25/06 Deutsche Bank NYC Matt Siben Nye, Blaine 05/03/06-05/05/06 Lead Plaintiff Houston Patrick Coughlin, Helen Hodges, Shawn Hays Rock, Robert 05/17/06-05/18/06 CSFB Houston Paul Howes Ronen, Joshua 05/10/06 Barclays NYC Paul Howes Sargent, Mark 05/08/06 Lead Plaintiff Houston John Pierce Schwarcz, Steven 05/11/06-05/12/06 Vinson & Elkins Houston John Pierce Schwert, William 05/23/06, 05/25/06 CSFB NYC Shawn Hays Shaked, Israel 05/22/06-05/23/06 Lead Plaintiff Houston Helen Hodges Shenkman, Craig 05/02/06-05/03/06 Lead Plaintiff Houston Matt Siben Solomon, Saul 05/02/06-05/04/06 Lead Plaintiff Houston Paul Howes, Xan Bernay Sundaresan, Suresh 05/23/06 Deutsche Bank NYC Matt Siben Tabak, David 05/25/06 Lou Pai Houston Paul Howes Thakor, Anjan 05/11/06 CSFB Houston John Lowther Wolfram, Charles 04/26/06-04/27/06 Vinson & Elkins Houston John Pierce 215. Following is a brief description of each of our experts and their testimony. Dr. Blaine Nye is President of Stanford Consulting Group and is a financial economist. Dr. Nye received his M.B.A. and Ph.D. in Finance from Stanford, and is an expert on market efficiency, materiality, causation and damages. Dr. Nye provided detailed expert opinions concerning loss causation and materiality, and Dr. Nye also submitted expert opinions on the damages suffered by Enron security purchasers during the Class Period, including Enron’s common stock, options on Enron’s common shares, six issues of preferred securities, and Enron’s debt securities. Dr. Nye testified that the markets for Enron securities were efficient; this evidence supports the fraud-on-the-market theory - 120 -
and is the basis for a presumption of reliance in a securities fraud case. He stated, “Defendants’ scheme to defraud and the resulting material misrepresentations and omissions by Defendants in the Class Period regarding Enron’s financial and operating performance, financial condition, and prospects did have a significant effect on prices of Enron securities, and served to inflate their prices until the truth began to emerge and the prices fell.” 1/17/06 Expert Report of Blaine Nye, Ph.D. at 32. Thus his testimony supported the elements of loss causation and economic loss. In response, the defendants fielded eight experts to attack Dr. Nye’s analyses. Defendants’ experts claimed Dr. Nye’s damages analysis was flawed in numerous ways. Some of them “corrected” his “mistakes” and generated aggregate damages of $17 billion and lower amounts. They also asserted that the banks did nothing wrong and in any event, the defendants’ actions did not cause any investor losses. In rebuttal, Dr. Nye stated, “The cause of investors’ economic losses was the inflation caused by the concealment of Enron’s true risk, financial condition, performance, and prospects, resulting in inflated prices of Enron securities, followed by the disclosure of the truth about these subjects, events and disclosures which caused the prices of Enron’s securities to decline precipitously.” 4/13/06 Expert Rebuttal Report of Blaine F. Nye, Ph.D. at 5. In addition to these reports, Dr. Nye prepared an expansive expert declaration in support of Lead Plaintiff’s Amended Motion for Class Certification, and Dr. Nye also prepared an expert rebuttal declaration in response to expert opinions submitted by defendants opposed to certifying a class. Dr. Nye testified at the hearing on class certification in March 2006 and he was deposed for three days in May 2006. 216. Mr. Saul Solomon is a licensed CPA in Texas, Alabama and Mississippi. Mr. Solomon also is a Certified Fraud Examiner, Certified Valuation Analyst and a Diplomat on the American Board of Forensic Accounting. He currently is a Managing Director of UHY Mann Frankfort Stein & Lipp Advisors, LP. Mr. Solomon provided a comprehensive expert report and supplemental report concerning the accounting treatment of myriad Enron-related transactions, and - 121 -
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UNITED STATES DISTRICT COURT SOUTHE
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2. The Parties Establish a Document
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I, HELEN J. HODGES, declare as foll
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• Reviewed over 70 million pages
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6. The above recoveries were based
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gathered and which the banks and En
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14. In this endeavor, Coughlin Stoi
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17. Lead Counsel prosecuted the lit
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[T]his representation has been unde
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and the necessary involvement with
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case. The Court hereby awards attor
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published an article, “Enron Jolt
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statements. We compiled profiles on
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34. We had no way of knowing whethe
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which witnesses to pursue, but cont
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the market in October 2001. The ana
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said it was unable to determine whe
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depositions because discovery was p
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65. After the motion was filed, The
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institutional plaintiffs, their rep
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drawing on the expertise of our in-
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83. On May 3, 2002, the Preferred P
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finance certain of the partnerships
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and participated in a scheme to def
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(j) Arthur Andersen LLP (Docket No.
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Lead Plaintiff had adequately alleg
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(a) The Court ruled that Lead Plain
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director of New Power, and issuance
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94. On September 26, 2002, Lead Pla
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mandamus review, and that the Court
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106. On May 6, 2003, defendant Citi
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scheme, and certain specific allega
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pled with the requisite particulari
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Merrill Lynch and Deutsche Bank Ent
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4. Motions to Intervene Additional
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Gramm, Jaedicke, LeMaistre, Meyer,
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Page 75 and 76: 121. On May 7, 2003, the Outside Di
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Page 79 and 80: 131. As part of discovery, Lead Cou
Page 81 and 82: Third Parties and Defendants Date S
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Page 85 and 86: 133. Document requests and subpoena
Page 87 and 88: 139. In responding to the document
Page 89 and 90: 146. In addition to JPMorgan’s in
Page 91 and 92: 10. Requests for Admission 152. In
Page 93 and 94: Protocol Order provided for the ord
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Page 97 and 98: Deponent Entity Date[s] Location No
Page 105 and 106: promptly responded to all discovery
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Page 109 and 110: securities, understanding of a repr
Page 111 and 112: 187. Lead Counsel made further supp
Page 113 and 114: April 16, 2004, Lead Counsel filed
Page 115 and 116: 195. On April 13, 2004, defendants
Page 117 and 118: Plaintiffs’ Investors Partner Lif
Page 119 and 120: • Outside Directors’ Memorandum
Page 121 and 122: 208. A two-day hearing was held reg
Page 123: Expert Entity Area of Opinion Dorri
Page 127 and 128: nature of Enron’s financial condi
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Page 131 and 132: primarily involving Deutsche Bank,
Page 133 and 134: We filed a notice of request for se
Page 135 and 136: 236. Bankruptcy Examiner Batson him
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Page 139 and 140: proceeds for our settlement. Thus,
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Page 143 and 144: team; for example, we reviewed info
Page 145 and 146: Court ruled that Lead Plaintiff fai
Page 147 and 148: Opposition to Deutsche Bank’s Mot
Page 149 and 150: Sec. Litig., 443 F.3d 987 (8th Cir.
Page 151 and 152: Plaintiff’s Opposition to Motion
Page 153 and 154: dated June 5, 2006 as It Pertains t
Page 155 and 156: the Pleadings (Docket No. 5019). On
Page 157 and 158: joint-and-several liability for kno
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Page 161 and 162: y the court and cited in In re Cend
Page 163: 296. Attached hereto as Ex. 2 is a
Page 166 and 167: ADDITIONAL SERVICE LIST Stuart Yoes
Page 168 and 169: ENRON COUGHLIN STOIA GELLER RUDMAN
Page 170 and 171: Name Title Hours Rate Lodestar Meye
Page 172 and 173: ENRON - SUMMARY OF PLAINTIFFS' FIRM
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EXHIBIT 4
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TOP SECURITIES SETTLEMENTS Case Nam
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Exhibit Listings and Notes regardin
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Declaration Of Helen J. Hodges In Support Of Lead Counsel's ...

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