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

complaint did not comply with applicable pleading requirements; and the complaint failed to plead
loss causation. On December 30, 2003, Lead Counsel filed Plaintiffs’ Opposition to the Citigroup
Defendants’ Separate Memorandum of Law in Support of Their Motion to Dismiss (Docket No. 86
in Case No. H-02-3401), which argued that Citigroup’s conduct in the Nighthawk transaction
violated the securities laws, Citigroup made false and misleading statements, plaintiffs’ claims were
pled with the requisite particularity, and the complaint adequately pled loss causation.
(b)
Deutsche Bank: Deutsche Bank argued for dismissal because the claims
against it were time-barred. On December 30, 2003, Lead Counsel filed Plaintiffs’ Opposition to
Deutsche Bank Entities’ Motion to Dismiss (Docket No. 85 in Case No. H-02-3401), which argued
that the defendant’s conduct in tax transactions violated the securities laws, and both reliance and
loss causation were properly pled. On January 29, 2004, Lead Counsel also filed Plaintiffs’ Sur-
Reply to Reply Memorandum of Law in Support of the Deutsche Bank Entities’ Motion to Dismiss
(Docket No. 125 in Case No. H-02-3401), arguing that the effect of the tax transactions was
unknown to investors and the transactions had no legitimate business purpose.
(c)
JPMorgan and Lehman Brothers: JPMorgan argued that the complaint failed
to allege any act constituting primary liability; failed to plead scienter; and failed to adequately
allege control person liability. Lehman Brothers argued for dismissal because it was not subject to
control person liability. On December 30, 2003, Lead Counsel filed Plaintiffs’ Memorandum of
Law in Opposition to the Motions to Dismiss Filed by the JPMorgan Defendants and Lehman
Defendants (Docket No. 87 in Case No. H-02-3401), which argued that JPMorgan’s conduct in
prepays and other transactions violated the securities laws, and that the complaint’s allegations were
sufficiently pled.
(d)
Officer Defendants Buy, Frevert, Kean, Koenig, McMahon, Olson, Rice,
Whalley, Hannon, Hirko and Causey; and Director Defendants Belfer, Blake, Chan, Duncan, Foy,
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