This section contains the nature of the case and procedural background.

Ps allege that Ds (CIBC, CitiGroup, J.P. Morgan, Vinson & Elkins, Arthur Anderson, Barclays, Credit Suisse, Kirkland & Ellis, Bank of America, Merrill Lynch, Lehman Bros, and Deutsche Bank and others) are liable for making false statements or for failing to disclose adverse facts while selling Enron Securities or for participating in a scheme to defraud such purchasers. Ps alleged a Ponzi scheme in which the parties violated all types of federal and securities laws for the purpose of inflating Enron’s earnings and concealing growing debts. Ps alleged that the banks participated by advancing funds to Special Purpose Entities to allow these Enron companies to complete bogus transactions in order to create fake profits and to conceal billions in unreported debt. Ps allege that the banks continued to loan money to Enron to ensure liquidity all the while selling shares in Enron they knew were worthless. The banks also assisted in inflating Enron stock by issuing misleading financial reports. Specific charges were levied against D related to a scheme to loan Enron $4 billion, by helping Enron raise $2 billion from securities sales and to finance illicit SPE’s. Ps alleged that law firms participated in the scheme by creating the SPE’s and writing and reviewing all of Enron’s financial statements. Ps also allege that law firms also provided false sale and other opinions that were critical to continue the Ponzi scheme, to inflate earnings, and falsify financial reports. Ps accused the accounting firms of violating accounting standards and perpetrating a massive fraud and abandoned its responsibilities and professional standards to perpetrate a massive fraud. It also charged that the accounting firms were aware of all the schemes to hide the truth and participated in hidings assets and debts with the SPE’s. Ds filed a motion to dismiss.

The legal issues presented in this case will be displayed here.

The court's holding and decision will be displayed here.

Legal analysis from Dean's Law Dictionary will be displayed here.