Enron Securities Class Action
The Enron Securities Class Action Litigation has resulted in the largest settlement in any country for defrauded investors: $7.227 billion dollars. Roger B. Greenberg served as liaison counsel to all Plaintiffs and local counsel to the lead Plaintiff, the Regents of the University of California, in obtaining the result, confirmed in the latest opinions authored by the trial judge, Melinda Harmon, United States District Court, Southern District of Texas, Houston Division (In Re Enron Corporation Securities, Derivative & "ERISA" Litigation). The settlements involved approximately 195 different Enron or Enron-related securities, with legal claims premised upon violations of federal and state statutes and common law. The Court approved the Plan of Allocation to each class of security as "fair, adequate and reasonable," clearing the way for distribution of funds to approximately 1.3 million wronged investors after almost seven years of protracted litigation. The settlements were funded substantially by the largest financial institutions in the world accused of being principal actors with Enron officers, directors and others in the schemes that defrauded the public investors of approximately $40 billion dollars from September 1997 to December 2001.
In a 209-page companion opinion, the Court awarded a contingent fee to Counsel for the Lead Plaintiff (including Schwartz, Junell, Greenberg & Oathout) based on a contractual arrangement entered into ex ante by The Regents and Lead Counsel, the San Diego based law firm of Coughlin, Stoia, Geller, Rudman & Robbins. The Court found the 9.52% graduated (increasing scale %) contingent fee "fair and reasonable," ... negotiated at arm's length between Lead Counsel and The Regents,..."a highly sophisticated investor with a substantial stake in the litigation and strong motivation to maximize the recovery for the class (under the fee agreement, over 90% of the settlement fund)"... and the percent "substantially lower than fees awarded in other comparable class actions at the time the agreement was made," which was at or about the time of the Enron bankruptcy. The Court recognized the graduated formula in the fee agreement served to attract and challenge, through zealousness, tenacity, and substantial investment ... "the top, most experienced, and formidable securities law firms in the country to undertake the largest and most complex securities fraud litigation thus far in the United States." Indeed, there were eighty-two different defendants and multiple financial institutions, including some of the largest banks in the world, accountants, law firms and Enron officers and directors. The Court agreed with one expert who opined, "Few, if any, other plaintiffs' counsel in my judgment could have pulled off such a tour de force" and the achievement attests to counsels' "credibility" and "creativity" in pursuing recompense for the defrauded investors. Schwartz, Junell, Greenberg & Oathout is proud of its accomplishments and the accolades given to the entire legal team on this historic case.
****
Joe Reynolds receives Lifetime Excellence in Advocacy Award
In October 2008, Joe H. Reynolds received the Lifetime Excellence in Advocacy Award presented by the Texas Association of Civil Trial and Appellate Specialists. A Fellow with the American College of Trial Lawyers since 1962, he has also been selected by his peers as one of the Best Lawyers in America and as one of the Top 20 Trial Lawyers in Houston. Previously, Joe was selected by his peers as one of the Top 5 Outstanding 50-Year Lawyers in the State. He is regarded as one of the outstanding trial lawyers in the country.
Joe began his law career in 1947 as an Assistant Attorney General under Price Daniel. After leaving the Texas Attorney General's office, Joe entered private practice where he has tried several hundred jury cases in Texas state and federal courts. He also had a very distinguished career as a United States Marine. He is a veteran of World War II and the Korean War, was wounded in both wars and was decorated for bravery and leadership.
****
The Firm Welcomes Three New Associates
We are also pleased to announce three new associates, Ruth Karper, Kyle Weynand and Jason Sharp, have joined the firm.
Ruth Karper was born and raised in New Jersey, received her law degree from George Washington University in Washington, D.C., and her Juris Doctorate from the University of Texas School of Law. Prior to attending law school, Ruth worked at the Department of Justice, Office of Consumer Litigation, in Washington D.C. and at the United Nations, International Criminal Tribunal for the former Yugoslavia ("ICTY"), in The Hague, Netherlands.
While at the DOJ, Ruth assisted in all stages of civil and white collar criminal investigations and prosecutions against corporations and individuals for acts including the illegal distribution of pre-controlled substance drugs, odometer fraud, mail and wire fraud, and money laundering. After working at the DOJ, Ruth moved to The Hague for three years to work at the ICTY as a case manager to prosecute violations of international humanitarian law committed in the former Yugoslavia. Prior to joining the firm, Ruth served as law clerk for The Honorable Earl S. Hines, United States Magistrate Judge for the United States District Court, Eastern District of Texas.
Kyle Weynand earned his undergraduate degree in Finance from Texas A&M University and his Juris Doctorate, summa cum laude, from South Texas College of Law. While at South Texas College of Law, Kyle was a member of Law Review and received numerous honors and awards.
Before joining the firm, Kyle worked on complex litigation matters encompassing commercial disputes, personal injury, premises liability, maritime/admiralty, insurance coverage, subrogation, energy-related issues, oil & gas exploration and production both on land and offshore, as well as indemnity issues. Kyle has also assisted in industry presentations in London and Zurich regarding the benefits and drawbacks of Long Term Service Agreements as they relate to turbines and generators in the energy industry.
Jason Sharp served with distinction for five years in the United States Air Force prior to earning his Juris Doctorate in 2002 from South Texas College of Law. He was an Assistant Articles Editor for South Texas Law Review, a staff writer for the student newspaper, and served as a Judicial Intern for the First Court of Appeals.
Before joining the firm, Jason worked for the law firm of Coats|Rose, focusing on commercial and business litigation, insurance coverage and bad faith, and employment litigation. In addition, Jason has handled appeals before state and federal appeals courts, as well as the Court of Appeals for Veterans Claims.
