United States Fifth Circuit

In an action alleging that defendants-banks entered into transactions that allowed Enron to misstate its financial condition, to plaintiffs-stockholders' detriment, an order certifying a single class of plaintiffs is reversed and remanded where: 1) a determination that the Affiliated Ute presumption applied to the facts of the case was incorrect; and 2) the district court gave an overly broad definition of "deceptive act[s]," thus giving rise to an erroneous classwide presumption of fraud on the market.

Appellate Information

• Decided 03/19/2007
• Published 03/20/2007

Judges

• JERRY E. SMITH, Circuit Judge:, Before JOLLY, SMITH and DENNIS, Circuit Judges.

Court

• United States Fifth Circuit

Counsel

• For Appellant:
  
• David H. Braff, Jeffrey T. Scott, Marc De Leeuw, Michael T. Tomaino, Sullivan & Cromwell, New York City, Barry Abrams, Abrams, Scott & Bickley, Houston, TX, for Appellants., Richard W. Clary (argued), Julie A. North, Darin P. McAtee, Cravath, Swaine & Moore, New York City, George W. Bramblett, Jr., Noel M.B. Hensley, Haynes & Boone, Dallas, TX, Lawrence David Finder, Odean L. Volker, Haynes & Boone, Houston, TX, for Credit Suisse Appellants and Pershing, LLC., David Michael Gunn, David J. Beck, Russell Stanley Post, Beck, Redden & Secrest, Houston, TX, Stuart J. Baskin (argued), Herbert S. Washer, Adam S, Hakki, Shearman & Sterling, New York City, for Merrill Lynch & Co., Inc. and Merrill Lynch Pierce Fenner & Smith, Inc., Laura W. Brill, David Siegel, Jonathan P. Steinsapir, Irell & Manella, Los Angeles, CA, for Clearing House Ass'n, LLC, Securities Industry & Financial Markets Ass'n and Chamber of Commerce of U.S., Amici Curiae., David S. Morales, Asst. Atty. Gen., Austin, TX, for State Atty. Gens., Amicus Curiae.


• For Appellees:
  
• William S. Lerach, Eric Alan Isaacson, Joseph David Daley, Helen J. Hodges, Spencer Alan Burkholz, Lerach, Coughlin, Stoia, Geller, Rudman & Robbins, San Diego, CA, Sanford Svetcov, Patrick J. Coughlin (argued), Lerach, Coughlin, Stoia, Geller, Rudman & Robbins, San Francisco, CA, for Plaintiffs-Appellees.