Enron Corp. - University of California | Office of The President

and condition of Enron's business operations and assets. Bank America is liable under §11 for its
participation in the following offerings as a lead underwriter:
5/99 $500 million Enron notes
8/99 $222 million Enron exchangeable notes
5/00 $500 million Enron notes
782. In addition, throughout the Class Period, Bank America issued analysts' reports on
Enron which contained false and misleading statements concerning Enron's business, finances and
financial condition and its prospects, including, but not limited to, those dated 9/30/99, 10/12/99,
10/15/99, 12/16/99, 1/12/00, 1/18/00, 1/20/00, 4/17/00, 10/17/00, 8/15/01, 8/28/01 and 10/16/01,
as pleaded herein. These were all statements by Bank America to the securities markets which
helped to artificially inflate the trading prices of Enron's publicly traded securities. Keeping Enron's
stock price inflated was important to Bank America as it knew that if the stock price fell below
various "trigger" prices, Enron would be required to issue millions of additional Enron shares, which
would reduce Enron's shareholders' equity by hundreds of millions if not billions of dollars, endanger
its investment-grade credit rating, likely cut off its access to the capital markets and thus endanger
the ongoing scheme from which Bank America was profiting.
783. In addition to its own direct liability for making false and misleading statements,
Bank America also engaged and participated in and furthered the fraudulent scheme by helping to
finance or otherwise participate in illicit transactions with Enron which it knew would contribute
materially to Enron's ability to continue to falsify its financial condition.
784. During the Class Period, Bank America knew that Enron was falsifying its publicly
reported financial results and that its true financial condition was much more precarious than was
publicly known. It obtained this knowledge due to its access to Enron's internal business and
- 522 -