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

Executive Committee, embellished Lead Plaintiff’s allegations, reversed its prior rulings concerning
pleading under the PSLRA, and obfuscated matters favorable to the moving defendants. On April
16, 2003, Lead Plaintiff filed an opposition (Docket No. 1338), arguing that Lead Plaintiff’s
allegations in its complaint supported the Court’s order denying the motion to dismiss. The Court
denied the motion. See 4/21/03 Order re Certain Officer Defendants’ Motion for Reconsideration
(Docket No. 1345) at 8.
104. On April 8, 2003, Fastow filed a motion seeking to postpone his filing of an answer to
the complaint pending conclusion of the criminal proceedings against him (Docket No. 1322). On
April 25, 2003, Lead Plaintiff filed a response (Docket No. 1350), arguing that Fastow was required
to formally invoke his Fifth Amendment privilege and concurrently answer those allegations where
the privilege did not apply. The Court granted Fastow’s motion. See 4/28/03 Order re Fastow
Motion to Postpone Answer (Docket No. 1353) at 3.
105. On April 29, 2003 and April 30, 2003, defendants CIBC and BofA filed motions for
summary judgment (Docket Nos. 1362, 1357), contending they were not proper parties to the
litigation, but rather that certain of their subsidiaries were. The defendants argued for judgment as a
matter of law because their parent entities did not engage in the conduct alleged, and the conduct of
their subsidiaries could not be imputed to it. On May 19, 2003 and May 20, 2003, Lead Plaintiff
filed oppositions to the motions (Docket Nos. 1396, 1405), which raised several legal theories under
which the moving defendants could be held liable. Lead Plaintiff also highlighted admissions by
defendants and evidence which raised issues of fact germane to the contentions of the movants, and
argued that Lead Plaintiff’s inability to conduct discovery further warranted denial of the motions.
The Court denied the motions, citing the arguments advanced by Lead Plaintiff. See 5/21/03 Order
re CIBC and BofA Summary Judgment Motions (Docket No. 1392) at 3.
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