Plaintiffs' Memorandum of Law in Opposition to Motions to Dismiss ...

TABLE OF CONTENTS
Page
I. Introduction ........................................ 1
II. Statement of Facts .................................... 3
A. Year-End 97 Crisis................................ 3
B. The 97-00 Successes – Enron's Stock Soars ................... 5
C. The Partnerships and SPEs............................12
D. Enron Energy Services ("EES") .........................18
E. More Explicit Actual Notice of Wrongdoing ..................18
F. Enron Broadband ("EBS") ............................19
G. New Power....................................20
H. Hidden/Disguised Loans.............................21
I. Enron's Access to the Capital Markets......................23
J. Late 00/Early 01 Prop-Up ............................23
K. The Impending Collapse .............................24
L. The End......................................25
M. The Actual Knowledge of the Outside Directors.................31
III. Argument .........................................35
A. Plaintiffs Meet the Applicable Pleading Standard ................35
B. The CC Satisfies the Particularity Pleading Requirements of Rule 9(b) and
the PSLRA ....................................37
C. Plaintiffs Have Stated a Claim for Violation of §10(b) .............43
1. The Outside Directors' Misrepresentations and Omissions of Material
Fact Are Actionable ...........................43
a. Plaintiffs Have Adequately Pleaded Claims Under Section
10(b) of the Exchange Act and Satisfied the PSLRA's
Standards for Pleading Falsity ..................43
b. The Outside Directors Are Liable Under Section 10(b) for
Failing to Make Full and Accurate Disclosure of All Material
Facts ...............................44
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