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

scenario that if the truth were told, Enron was insolvent by year-end 1999 and that fact would have
been revealed no later than March 30, 2000, when Enron filed its Form 10-K.
227. To efficiently conduct discovery and prepare the trial evidence for a simple, but
compelling presentation, we spent considerable time working with our experts and consultants, to
identify the types of information that best proved defendants’ wrongdoing, and to help our experts
form their opinions, based on the hundreds of thousands of documents reviewed to establish
evidence of defendants’ knowing participation or severe recklessness in the alleged fraud.
Moreover, proving damages in a securities case is always a complicated matter, but especially so
here because of the number of securities involved, the wide disparity in the experts’ view, the
complex financial vehicles, and the novel legal issues. The range of damages by the experts
presented us with not only the task of simplifying the discussion for a jury, but also the issue of how
to rebut the considerable efforts by the banks to demonstrate that the Company’s stock-price decline
in 2001 was an energy-sector-wide effect not attributable to their Enron transactions or conduct –
they were just doing banking business. In addition, we gathered and analyzed evidence to prove
loss causation while defendants argued that we could not prove loss causation because their fraud
was not revealed until after Enron’s stock price had fallen and Enron was in bankruptcy.
228. Lead Counsel’s work with its experts, in preparing their substantive reports, and in
pretrial preparation, entailed culling from an overwhelming amount of relevant data the most telling
evidence and then repeatedly simplifying it in understandable diagrams, and comparatively few
documents and persuasive bullet points for the jury.
XI.
REPRESENTING THE CLASS IN ENRON’S AND LJM2’S
BANKRUPTCY CASES
229. In December 2001, I reviewed Enron’s bankruptcy docket and oversaw preparation of
our pleadings for filing there. I coordinated those efforts with attorneys from our New York office.
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