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

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Enron-related transactions – yet for years these V&E lawyers continued to provide advice and opinions, crafted SEC disclosures, and provided other legal services in support of the transactions. Dr. Cohen also provided expert rebuttal testimony to defense expert opinions submitted by Messrs. McFadden and Schwarcz. Dr. Cohen was deposed in May 2006. 223. Professor Susan Koniak is a Professor of Law with Boston University School of Law, and has been a visiting professor at Cornell Law School, Harvard Law School and Yale’s School of Management. Professor Koniak is a recognized expert on professional responsibility and legal ethics. Professor Koniak submitted an expert rebuttal report opining V&E lawyers acted unethically by recklessly or knowingly working with Enron and its agents to create fraudulent transactions and to conceal fraudulent conduct, in deliberate disregard of the law. Professor Koniak was deposed in May 2006. 224. Professor Mark Sargent is Dean and Professor of Law with Villanova University School of Law. Professor Sargent is a current member of the board of directors of New York Stock Exchange Regulation, Inc., the independent self-regulatory organization for the New York Stock Exchange. He also is a current member of the boards of directors of two mutual fund complexes registered under the Investment Company Act of 1940. Professor Sargent also has more than 25 years of scholarly work with corporate law, securities regulation and other areas. Professor Sargent’s expert report and opinion concerned whether V&E properly provided advice on disclosures in documents to be filed under the Exchange Act, and Professor Sargent also analyzed the advice V&E gave to Enron’s Board. Professor Sargent opined V&E failed to meet its obligations, committed malpractice, and knowingly and recklessly participated in Enron’s fraudulent schemes. Professor Sargent was deposed in May 2006. 225. Mr. Craig Shenkman is a Managing Director of UHY Mann Frankfort Stein & Lipp Advisors, LP, and is a licensed CPA in Texas. Mr. Shenkman opined on various tax transactions - 126 -
primarily involving Deutsche Bank, including the Teresa, Steele, Tomas, Cochise and Condor transactions. Among other things, Mr. Shenkman examined the transaction structures, opined on relevant tax law issues, their impact on tax reporting, and related matters. Mr. Shenkman concluded the tax transactions inflated Enron’s financial results during the Class Period by improperly exploiting the difference between tax accounting under the Internal Revenue Code and GAAP, resulting in fabricated financial accounting benefits. Mr. Shenkman also prepared an expert rebuttal report in response to defense expert Erickson’s report concerning the purported validity of the tax transactions. Mr. Shenkman was deposed in May 2006. 226. Professor Israel Shaked is a Professor of Finance and Economics with Boston University’s School of Management. He also is a co-founder and director of the Institute of Chartered Pension Professionals, and for 19 years served as a director of the Boston Chartered Financial Analysts Examination Review Program. Professor Shaked has served as a consultant to the SEC, the IRS, the Department of Labor and the Pension Benefit Guarantee Corporation. Professor Shaked prepared an expert rebuttal report, opining on the fair market value of Enron and its subsidiaries as of October 19, 1998 and December 31, 1999. Professor Shaked prepared numerous valuation analyses and methodologies in examining Enron, its assets and its subsidiaries, including a detailed valuation analysis of Enron’s individual business units. Professor Shaked also prepared a summary of Enron’s debt and capital adequacy. Professor Shaked further provided rebuttal opinions and critiques of the reports by defense experts Kearns and Greenspan. Professor Shaked was deposed in May 2006. He testified that if the market had known Enron’s true financial condition, as of October 19, 1998 Enron would have been valued at approximately $1.8 billion (far below its market capitalization at that time) and as of December 31, 1999 Enron was insolvent by approximately $4.3 billion. His opinion supported Dr. Nye’s assumption under one damages - 127 -
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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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professionals and experts, and atte
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121. On May 7, 2003, the Outside Di
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of Enron’s prominence and magnitu
Page 79 and 80: 131. As part of discovery, Lead Cou
Page 81 and 82: Third Parties and Defendants Date S
Page 83 and 84: Third Parties and Defendants Date S
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
Page 95 and 96: privilege. And the defendants agree
Page 97 and 98: Deponent Entity Date[s] Location No
Page 105 and 106: promptly responded to all discovery
Page 107 and 108: Enron securities, and questions con
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 and 124: Expert Entity Area of Opinion Dorri
Page 125 and 126: and is the basis for a presumption
Page 127 and 128: nature of Enron’s financial condi
Page 129: economically valid method and frame
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
Page 178: EXHIBIT 4
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TOP SECURITIES SETTLEMENTS Case Nam
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Exhibit Listings and Notes regardin
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