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

More documents

Recommendations

Info

88. Lead Plaintiff filed a 105-page opposition on June 10, 2002 (Docket No. 853), which argued that the defendants were liable because they made misrepresentations and omissions of material fact, used manipulative and deceptive devices, and ignored obvious evidence of fraud given the nature, size and frequency of the subject transactions. Lead Plaintiff contended that its complaint was sufficient based on submitted minutes of Enron Board meetings and the detail in the complaint concerning the defendants’ conduct and Enron’s false financial statements. 89. The Court ruled that, as to the §10 claims, while some of the Outside Directors could be considered to have made statements by virtue of their signing of financial statements, the complaint failed to plead scienter with allegations of matters discussed at Board meetings and insider trading; and the §§20(a) and 20A claims accordingly failed for lack of a predicate violation. As to the §11 claims, the Court dismissed some of them based on the arguments of the Outside Directors, but upheld others based on the arguments of Lead Plaintiff; it upheld certain of the §15 claims, finding an adequate predicate violation and sufficient allegations of control. As to the TSA claim, the Court dismissed it (while granting leave to amend) for failure to adequately plead seller, aider/abettor or control person liability. See 3/12/03 Memorandum and Order Regarding Enron Outside Director Defendants’ Motions (Docket No. 1269) at 89-138. 90. On May 8, 2002, motions to dismiss were filed by defendants Rebecca Mark- Jusbasche (Docket No. 597), Horton, Olson (Docket No. 641), Whalley (Docket No. 643), Frevert (Docket No. 646), Koenig (Docket No. 656), Kean (Docket No. 657) and Sutton (Docket No. 686); Fastow (Docket No. 1299), Harrison, Pai, Buy, Hirko, Rice, Causey, McMahon, Derrick, Hannon, Lay, and Skilling (Docket Nos. 718, 735, 740). In general, the defendants argued for dismissal because the complaint failed to comply with applicable pleading requirements, such as those regarding particularity and scienter, and failed to allege any actionable conduct. On June 10, 2002, Lead Plaintiff filed a 160-page opposition thereto (Docket No. 856). The Court ruled as follows: - 48 -
(a) The Court ruled that Lead Plaintiff had failed to state a claim against Mark- Jusbasche under §10, because the complaint did not identify with specificity any material non-public information possessed by the defendant while she traded in Enron securities, and her sales of stock failed to raise an adequate inference of scienter. The Court also dismissed the §20(a) claim against her, finding no predicate violation or adequate allegations of control. The Court, however, ruled that Lead Plaintiff had sufficiently alleged a claim against her under §11, and thus sustained that claim. See 3/24/03 Memorandum and Order re: Insider Defendant Rebecca Mark-Jusbasche (Docket No. 1300) at 15. (b) The Court denied the motion as to defendants Horton, Olson, Whalley, Frevert, Koenig, Kean, and Sutton, based on Lead Plaintiff’s allegations that the Insider Defendants were involved in the day-to-day operations of Enron and had a hand in controlling the company, the pervasive and extensive scope of the alleged fraud, awareness within Enron of the sham nature of the company, the compensation provided to the defendants, and the defendants’ trading in Enron stock. These allegations sufficed to state claims against the defendants under §§10 and 20A. Also finding the presence of an adequate predicate violation and sufficient allegations of control, the Court sustained Lead Plaintiff’s §20(a) claims against defendants. See 3/24/03 Memorandum and Order re: Enron Insider Defendants Horton, Olson, Whalley, Frevert, Koenig, Kean and Sutton (Docket No. 1299). (c) The Court held that Lead Plaintiff had stated a claim against Fastow under §10, in light of allegations of Fastow’s close involvement in the alleged scheme, issuance of false and misleading statements, and insider trading. The Court also sustained Lead Plaintiffs’ §20(a) claim, finding sufficient the allegations of Fastow’s control over Enron, related entities and transactions. The Court further upheld Lead Plaintiff’s claims against Fastow under §§20A, 11 and - 49 -
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 and 46: finance certain of the partnerships
Page 47 and 48: and participated in a scheme to def
Page 49 and 50: (j) Arthur Andersen LLP (Docket No.
Page 51: Lead Plaintiff had adequately alleg
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 103 and 104:
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 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,
Page 141 and 142:
egarding the policies and he moved
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
Page 159 and 160:
pricing or trade volume data, estim
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
Page 182 and 183:
TOP SECURITIES SETTLEMENTS Case Nam
Page 184 and 185:
Exhibit Listings and Notes regardin
show all

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

Create successful ePaper yourself

Delete template?

Save as template?