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

Page
(a)
(b)
(c)
(d)
Joe Foy......................71
Dr. Wendy Gramm................72
Robert Jaedicke..................72
Charles Le Maistre................73
(e) Ronnie Chan ...................73
(f) John Duncan ...................73
(g) Norman Blake ..................74
(h)
Robert Belfer...................74
D. Plaintiffs Have Adequately Alleged a §20A Claim ...............75
1. Plaintiffs Traded Contemporaneously with Defendants .........75
2. Defendants' Arguments Regarding §20A Are Meritless .........77
E. The Outside Directors Are Liable under §11 of the Securities Act .......78
1. Fifth Circuit Law Makes Clear that Rule 9(b) Does Not Apply to
Plaintiffs' §11 Claims ...........................79
2. This Court Has Found that Purchasers in the Aftermarket May Bring
§11 Claims; the Statutory Framework and Ample Precedent Support
that Holding ...............................80
3. Plaintiffs Adequately Allege that the Registration Statements,
Including the Prospectuses, Contained Material Misrepresentations
and Omissions ..............................84
a. False and Misleading Financial Results and Related- Party
Transaction Representations ...................85
b. False and Misleading Statements About EBS and the
EIN................................86
c. False Statements Regarding EES.................88
d. False and Misleading Statements About Enron's
Capitalization...........................89
e. False and Misleading Statements About Enron's Financial
Risk Management ........................91
f. False and Misleading Statements About Enron's Price Risk
Management Activities and Financial Instruments ........93
4. Plaintiffs Do Not Have to Plead Reliance ................94
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