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

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(e) Credit Suisse First Boston (Docket No. 658) argued for dismissal because the complaint failed to satisfy the pleading requirements of Rule 8 and the PSLRA; certain of the claims were time-barred; the complaint failed to allege a primary violation; and the complaint failed to adequately allege a claim for control person liability. On June 10, 2002, Lead Plaintiff filed a 109- page opposition to CSFB’s motion to dismiss (Docket No. 855), arguing that CSFB faced liability because it sold Enron and Enron-related securities to investors via false Registration Statements; issued false analyst reports on Enron; employed manipulative and deceptive devices; and participated in a scheme to defraud purchasers of Enron’s securities. Lead Plaintiff highlighted its allegations that CSFB helped structure and finance the partnerships Enron controlled and funded their illicit transactions with SPEs, knowing they were vehicles being used to falsify Enron’s reported financial results; and engaged in numerous deceptive transactions with Enron to disguise billions of dollars in loans to Enron. Lead Plaintiff also argued that the complaint properly pled scienter as to CSFB. The Court ruled that Lead Plaintiff’s Consolidated Complaint stated a claim against this defendant with its allegations of CSFB’s involvement in the New Power IPO scheme and a disguised loan to Enron, as well as designing, structuring and funding the SPEs that were the primary vehicles utilized by Enron to falsify its financial condition. See Enron, 235 F. Supp. 2d at 698-701. (f) Citigroup Inc. (Docket No. 629) argued for dismissal because the complaint’s claims were not pled with the requisite particularity; the complaint failed to allege a primary violation of the securities laws; and Lead Plaintiff’s §11 claim should be dismissed because Lead Plaintiff lacks standing and failed to plead reliance. On June 10, 2002, Lead Plaintiff filed a 122- page opposition to Citigroup’s motion to dismiss (Docket No. 850), arguing that Citigroup faced liability because it sold Enron and Enron-related securities via false Registration Statements; issued false analysts’ reports on Enron; employed acts, contrivances and manipulative or deceptive devices; - 42 -
and participated in a scheme to defraud purchasers of Enron’s securities. Lead Plaintiff highlighted its allegations that Citigroup also helped structure and finance certain of the partnerships Enron controlled and their illicit transactions with SPEs, knowing they were vehicles being utilized by Enron to falsify its reported financial results; and also engaged in contrived and deceptive transactions with Enron to disguise billions of dollars in loans to Enron. Lead Plaintiff also argued that the complaint properly pled scienter as to Citigroup. The Court ruled that Lead Plaintiff’s Consolidated Complaint stated a claim against this defendant with its allegations of Citigroup’s involvement in the New Power IPO scheme, the LJM2 partnership, and $2.4 billion of disguised loans to Enron. See Enron, 235 F. Supp. 2d at 697-98. (g) Canadian Imperial Bank of Commerce (Docket No. 615) argued for dismissal because the complaint failed to meet the heightened pleading requirements of the PSLRA; the claims failed to constitute a primary violation of the securities laws; the complaint failed to identify alleged false analyst statements; and the complaint failed to adequately plead a claim for control person liability. On June 10, 2002, Lead Plaintiff filed a 123-page opposition to CIBC’s motion to dismiss (Docket No. 849), arguing that CIBC faced liability because it sold Enron and Enron-related securities via false Registration Statements; issued false analyst reports on Enron; employed acts, contrivances and manipulative or deceptive devices; and participated in a scheme to defraud purchasers of Enron’s securities. Lead Plaintiff highlighted its allegations that CIBC also helped structure and finance certain of the partnerships Enron controlled and their illicit transactions with SPEs, knowing they were vehicles being used to falsify Enron’s reported financial results. Lead Plaintiff also argued that the complaint properly pled scienter as to CIBC. The Court ruled that Lead Plaintiff’s Consolidated Complaint stated a claim against this defendant with its allegations of CIBC’s involvement in the New Power IPO, LJM2 partnership, and the fraud concerning Enron’s Broadband division. See Enron, 235 F. Supp. 2d at 701-02. - 43 -
Page 1 and 2: UNITED STATES DISTRICT COURT SOUTHE
Page 3 and 4: 2. The Parties Establish a Document
Page 5 and 6: I, HELEN J. HODGES, declare as foll
Page 7 and 8: • Reviewed over 70 million pages
Page 9 and 10: 6. The above recoveries were based
Page 11 and 12: gathered and which the banks and En
Page 13 and 14: 14. In this endeavor, Coughlin Stoi
Page 15 and 16: 17. Lead Counsel prosecuted the lit
Page 17 and 18: [T]his representation has been unde
Page 19 and 20: and the necessary involvement with
Page 21 and 22: case. The Court hereby awards attor
Page 23 and 24: published an article, “Enron Jolt
Page 25 and 26: statements. We compiled profiles on
Page 27 and 28: 34. We had no way of knowing whethe
Page 29 and 30: which witnesses to pursue, but cont
Page 31 and 32: the market in October 2001. The ana
Page 33 and 34: said it was unable to determine whe
Page 35 and 36: depositions because discovery was p
Page 37 and 38: 65. After the motion was filed, The
Page 39 and 40: institutional plaintiffs, their rep
Page 41 and 42: drawing on the expertise of our in-
Page 43 and 44: 83. On May 3, 2002, the Preferred P
Page 45: finance certain of the partnerships
Page 49 and 50: (j) Arthur Andersen LLP (Docket No.
Page 51 and 52: Lead Plaintiff had adequately alleg
Page 53 and 54: (a) The Court ruled that Lead Plain
Page 55 and 56: director of New Power, and issuance
Page 57 and 58: 94. On September 26, 2002, Lead Pla
Page 59 and 60: mandamus review, and that the Court
Page 61 and 62: 106. On May 6, 2003, defendant Citi
Page 63 and 64: scheme, and certain specific allega
Page 65 and 66: pled with the requisite particulari
Page 67 and 68: Merrill Lynch and Deutsche Bank Ent
Page 69 and 70: 4. Motions to Intervene Additional
Page 71 and 72: Gramm, Jaedicke, LeMaistre, Meyer,
Page 73 and 74: professionals and experts, and atte
Page 75 and 76: 121. On May 7, 2003, the Outside Di
Page 77 and 78: 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 99 and 100:
Page 101 and 102:
Page 103 and 104:
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 and 130:
economically valid method and frame
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
Page 137 and 138:
egarding the §11 claims, which wer
Page 139 and 140:
proceeds for our settlement. Thus,
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egarding the policies and he moved
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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
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Sec. Litig., 443 F.3d 987 (8th Cir.
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Plaintiff’s Opposition to Motion
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dated June 5, 2006 as It Pertains t
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the Pleadings (Docket No. 5019). On
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joint-and-several liability for kno
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pricing or trade volume data, estim
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y the court and cited in In re Cend
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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
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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
Page 184 and 185:
Exhibit Listings and Notes regardin
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