Plaintiffs' Memorandum of Law in Opposition to Motions to Dismiss ...
Plaintiffs' Memorandum of Law in Opposition to Motions to Dismiss ...
Plaintiffs' Memorandum of Law in Opposition to Motions to Dismiss ...
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
TABLE OF CONTENTS<br />
Page<br />
I. Introduction ........................................ 1<br />
II. Statement <strong>of</strong> Facts .................................... 3<br />
A. Year-End 97 Crisis................................ 3<br />
B. The 97-00 Successes – Enron's S<strong>to</strong>ck Soars ................... 5<br />
C. The Partnerships and SPEs............................12<br />
D. Enron Energy Services ("EES") .........................18<br />
E. More Explicit Actual Notice <strong>of</strong> Wrongdo<strong>in</strong>g ..................18<br />
F. Enron Broadband ("EBS") ............................19<br />
G. New Power....................................20<br />
H. Hidden/Disguised Loans.............................21<br />
I. Enron's Access <strong>to</strong> the Capital Markets......................23<br />
J. Late 00/Early 01 Prop-Up ............................23<br />
K. The Impend<strong>in</strong>g Collapse .............................24<br />
L. The End......................................25<br />
M. The Actual Knowledge <strong>of</strong> the Outside Direc<strong>to</strong>rs.................31<br />
III. Argument .........................................35<br />
A. Pla<strong>in</strong>tiffs Meet the Applicable Plead<strong>in</strong>g Standard ................35<br />
B. The CC Satisfies the Particularity Plead<strong>in</strong>g Requirements <strong>of</strong> Rule 9(b) and<br />
the PSLRA ....................................37<br />
C. Pla<strong>in</strong>tiffs Have Stated a Claim for Violation <strong>of</strong> §10(b) .............43<br />
1. The Outside Direc<strong>to</strong>rs' Misrepresentations and Omissions <strong>of</strong> Material<br />
Fact Are Actionable ...........................43<br />
a. Pla<strong>in</strong>tiffs Have Adequately Pleaded Claims Under Section<br />
10(b) <strong>of</strong> the Exchange Act and Satisfied the PSLRA's<br />
Standards for Plead<strong>in</strong>g Falsity ..................43<br />
b. The Outside Direc<strong>to</strong>rs Are Liable Under Section 10(b) for<br />
Fail<strong>in</strong>g <strong>to</strong> Make Full and Accurate Disclosure <strong>of</strong> All Material<br />
Facts ...............................44<br />
- i -