Office of the Attorney General News Release Archive

Wednesday, June 12, 2002

TEXAS ATTORNEY GENERAL'S OFFICE, 20 ADDITIONAL STATES FILE AMICUS CURIAE MEMORANDUM ARGUING DISCOVERY APPROPRIATE IN SHAREHOLDER SUITS FOR BANKS, LAW FIRMS, AND ACCOUNTANTS

AUSTIN - The State of Texas, and 20 other states across America, Monday stated to the U.S. District Court in Houston that federal securities law allows --- and that it is appropriate for the Court to allow --- discovery against the banks, law firm, and accounting firm named in the shareholder suits alleging securities fraud by Enron.

The banks, law firm and accounting firm are alleged to have made misrepresentations about the condition of Enron, participated in a scheme to defraud investors, or both.

The banks, law firm, and accountant defendants in the Enron shareholders suits argue that they are not responsible for the fraudulent acts of others or for conduct that occurred prior to their involvement.

"To the contrary ... they are liable for any of the unlawful acts taken by any of the participants in the scheme to defraud in which they participated," the memorandum signed by Texas Deputy Attorney General Jeff Boyd states.

The two cases to which today's amicus curiae memorandum applies are styled:

MARK NEWBY, et al., Individually and On Behalf of All Others Similarly Situated, Plaintiffs, vs. ENRON CORP., et al., Defendants, and

THE REGENTS OF THE UNIVERSITY OF CALIFORNIA, et al., Individually and On Behalf of All Others Similarly Situated, Plaintiffs, vs. KENNETH L. LAY, et al., Defendants.

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Media note: To view the memorandum, please go to the Internet page, www.oag.state.tx.us/notice/enron.htm, and scroll down to the section marked "Pleadings."


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