United States District Court, S.D. New York
February 25, 2004.
IN RE WORLDCOM, INC. SECURITIES LITIGATION This Document Relates To: INA ROSENBLOOM, individually and on behalf of all others similarly situated, Plaintiff, -v- CITIGROUP, INC., CITIGROUP GLOBAL MARKETS, INC. f/k/a SALOMON SMITH BARNEY INC. AND JACK GRUBMAN, Defendants EDWARD CASTELLANI, individually and on behalf of all others similarly situated, Plaintiff, -v- CITIGROUP, INC., CITIGROUP GLOBAL MARKETS, INC. f/k/a SALOMON SMITH BARNEY INC. AND JACK GRUBMAN. Defendants
The opinion of the court was delivered by: DENISE COTE, District Judge
Plaintiffs in the above-captioned actions allege claims arising from
the purchase of Targeted Growth Enhanced Terms Securities With Respect to
the Common Stock of MCI WorldCom, Inc., due August 15, 2003 ("TARGETS"),
a publicly traded preferred security issued by Targets Trust, an
Salomon Smith Barney, Inc. ("SSB"). The claims in these actions
arise from the same nucleus of facts surrounding the collapse of WorldCom
as alleged in the In re WorldCom, Inc. Securities Litigation
("Securities Litigation"). On January 30, 2004, plaintiff Ina
Rosenblum ("Rosenblum") in 03 Civ. 9490, moved for consolidation of her
action with Castellani v. Citigroup., 03 Civ. 10066 as related
actions, appointment as Lead Plaintiff in the consolidated actions, and
approval of Goodkind Labaton Rudoff & Sucharow LLP as Lead Counsel
for the class.
Rosenblum requests and defendants do not oppose consolidation of the
action in the manner ordered on August 8, 2003 in In re PaineWebber
GOALs Securities Litigation GOALs Actions ("GOALs Litigation").
Having had an Initial Pre-Trial Conference on this matter on February 18,
and having received on February 20 further information regarding
Rosenblum, it is hereby,
ORDERED as follows:
1. Rosenbloom and Castellani are consolidated for
all purposes pursuant to Rule 42(a), Fed.R.Civ.P. They shall be
referred to collectively as In re TARGETS Securities
Litigation, Master File No. 03 Civ. 9490 (DLC) ("TARGETS
2. The TARGETS Litigation shall be consolidated with the
Securities Litigation under the Master File No. 02 Civ. 3288
for pretrial purposes only.
3. No action taken hereunder shall have the effect of making any
person, firm or corporation a party to any action in which the person or
entity has not been named, served, or added as such in accordance with
the Federal Rules of Civil Procedure.
II. MASTER DOCKET AND SEPARATE ACTION DOCKETS
4. A Master Docket is hereby established for the consolidated
proceedings in the actions consolidated herein and any other actions
subsequently consolidated with them either for all purposes or for
pretrial purposes (the "Consolidated TARGETS Actions"). Entries in said
Master Docket shall be applicable to the Consolidated TARGETS Actions,
and entries shall be made therein in accordance with the regular
procedures of the Clerk of this Court, except as modified by this Order.
5. When a pleading is filed and the caption, pursuant to this Order,
shows that it is applicable to "All Actions," the Clerk shall file such
pleading in the Master File and note such filing in the Master Docket. No
further copies need be filed nor other docket entries made.
6. When a pleading or paper is filed and the caption shows that it is
applicable to less than All Actions, the Clerk shall file the original of
the paper in the Master File and a copy in the file of each separate
action to which it applies and shall note such filing in the Master
Docket and in the docket of each such separate action. The party filing
such paper shall supply the Clerk with sufficient copies of any paper to
permit compliance with this paragraph.
III. NEWLY FILED OR TRANSFERRED ACTIONS
7. When an action that relates to the same subject matter as the
Consolidated TARGETS Actions is hereafter filed in or transferred to this
Court and assigned to the undersigned, it shall be consolidated with
these actions in the same manner as the cases identified in Section I
above (provided that any case transferred to this Court solely for
pretrial proceedings shall be consolidated only to that extent absent
further order of this Court), except as provided below, and the Clerk of
a. File a copy of this Order in the separate file
for such action; and
b. Make an appropriate entry in the Master Docket.
8. Any defendant who has notice of the filing in or transfer to this
Court of a related case shall
a. Mail a copy of this Order to the attorneys for
the plaintiff(s) in the newly filed or
transferred case; and
b. File a notice of service of this Order with the
Clerk of Court to be docketed and filed in the
9. The Court requests the assistance of counsel in calling to the
attention of the Clerk the filing or transfer of any case which might
properly be consolidated with these actions.
IV. APPLICATION OF THIS ORDER TO SUBSEQUENT CASES
10. This Order shall apply to each action brought alleging claims
arising from the purchase or sale of Targets and assigned to the
undersigned which is subsequently filed in or transferred to this Court,
and which is assigned to the undersigned unless a party objecting to the
consolidation of that action or to any other provision of this Order
serves an application for relief from this Order or from any of its
provisions within ten (10) days after the date on which the Clerk mails a
copy of this Order to counsel for that party. The provisions of this
Order shall apply to such action pending the Court's ruling on the
11. Unless a plaintiff in a subsequently filed or transferred case is
permitted by the Court to use a separate complaint, defendants shall not
be required to answer, plead or otherwise move with respect to that
complaint in any such case. If a plaintiff in any such case is permitted
to use a separate complaint, each defendant shall have thirty days from
the date the Court grants such permission within which to answer, plead
or otherwise move with respect to any such complaint.
12. Every pleading filed in the Consolidated TARGETS Actions, and in
any separate action included therein, shall bear the following caption:
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
IN RE TARGETS SECURITIES :
LITIGATION : MASTER FILE
: 03 Civ. 9490 (DLC)
This Document Relates To: :
13. When a pleading is intended to be applicable to all actions to
which this Order applies, the words "All Actions" shall appear
immediately after the words "This Document Relates To:" in the caption.
When a pleading is intended to apply only to less than all of such
actions, the docket number for each individual action to which it is
intended to apply and the name of the plaintiff in said action shall
appear immediately after the words "This Document Relates To:" in the
VI. LEAD PLAINTIFF; LEAD PLAINTIFF'S COUNSEL
14. There being no opposition, Ina Rosenblum is hereby appointed Lead
Plaintiff for the Consolidated TARGETS Actions.
15. There being no opposition, Goodkind Labaton Rudoff & Sucharow
LLP shall serve as Lead Counsel for all plaintiffs in the Consolidated
TARGETS Actions ("TARGETS Lead Counsel").
16. TARGETS Lead Counsel shall have the following responsibilities:
a. Sign any consolidated complaint, motions,
briefs, discovery requests, objections, or
notices on behalf of all plaintiffs in the
Consolidated TARGETS Actions or those
plaintiffs in the
Consolidated TARGETS Actions filing the
b. Conduct all pretrial proceedings on behalf of
plaintiffs in the Consolidated TARGETS Actions.
c. Brief and argue motions.
d. Initiate and conduct any discovery that is
unique to the Consolidated TARGETS Actions.
e. Speak on behalf of plaintiffs in the
Consolidated TARGETS Actions at any pretrial
f. Employ and consult with experts.
g. Conduct settlement negotiations with defense
counsel on behalf of plaintiffs in the
Consolidated TARGETS Actions.
h. Call meetings of plaintiffs' counsel.
i. Distribute to all plaintiffs' counsel in the
Consolidated TARGETS Actions copies of all
notices, orders, and decisions of the Court;
maintain an up-to-date list of counsel
available to all plaintiffs' counsel on
request; keep a complete file of all papers and
discovery materials filed or generated in the
Consolidated TARGETS Actions which shall be
available to all plaintiffs' counsel in the
Consolidated TARGETS Actions at reasonable
17. A consolidated amended complaint for the Consolidated TARGETS
Actions shall be filed by March 5, 2004.
18. Defendants shall have no obligation to move, answer, or otherwise
respond to any of the complaints in the actions consolidated herein or
any actions subsequently consolidated with them. Any defendant named in
the Complaint filed in the Securities Litigation shall have no
obligation to answer or move with respect to the consolidated amended
complaint in the TARGETS Litigation until further Order of this
19. Defendants' motion to dismiss the consolidated amended complaint
shall be filed by April 2. Opposition to this motion is due April 16, and
any reply is to be filed by April 23.
19. TARGETS Lead Counsel and co-Lead Counsel in the Securities
Litigation shall coordinate the TARGETS Litigation with
the Securities Litigation, including by coordinating discovery
matters such as the production of documents and the taking of
20. Co-Lead Counsel in the Securities Litigation shall have
the following obligations:
a. Keep TARGETS Lead Counsel informed about
discovery matters and other issues and
proceedings of common interest in the
Securities Litigation and the
Consolidated TARGETS Actions.
b. Consult with TARGETS Lead Counsel to obtain the
views of plaintiffs' counsel in the
Consolidated TARGETS Actions on proposed
document requests, interrogatories, requests
for admissions, depositions, and litigation
incorporate those views wherever it is
appropriate to do so.
c. Should counsel in the Consolidated TARGETS
Actions identify in connection with a
deposition being taken by co-Lead Counsel in
the Securities Litigation any
discovery that is unique to the Consolidated
TARGETS Actions, co-Lead Counsel in the
Securities Litigation shall devise a
process through consultation with TARGETS Lead
Counsel to permit an attorney from the
Consolidated TARGETS Actions to participate in
the taking of each such deposition.
21. Service by defendants of pleadings and all other papers on TARGETS
Lead Counsel shall be deemed sufficient service in the Consolidated
22. TARGETS Lead Counsel may not contact defense counsel regarding
discovery without the consent of co-Lead Counsel in the Securities
Litigation or, in the absence of such permission, leave of the
23. TARGETS Lead Counsel may seek relief from these restrictions and
from any of the provisions of this Order by application to the Court upon
a showing of good cause. A showing of good cause regarding discovery
issues includes a showing that the discovery issue is unique to the
Consolidated TARGETS Actions.
XI. FUTURE ORDERS
24. All parties are required to check the Court's website on a daily
basis in order to obtain notice of any further orders issued by the Court
with respect to the Securities Litigation. The Court's website
is available at <www.nysd.uscourts.gov> through the "CourtWeb"
icon. Orders may be found by entering the name "WorldCom" in the "caption
search" option. Orders will be listed under the master docket number, No.
02 Civ. 3288.
25. All discovery obtained in the Consolidated TARGETS Actions may be
shared with plaintiffs in the Securities Litigation. All
discovery obtained by any defendant in the Consolidated TARGETS Actions
may be shared with any other defendant.
26. Cooperation by and among counsel is essential for the orderly and
expeditious resolution of this litigation. Accordingly, the communication
of information among and between Lead Counsel in the Securities
Litigation, Liaison Counsel and counsel in the Individual Actions,
and TARGETS Lead Counsel, and among and between defendants' counsel shall
not be deemed a waiver of the attorney-client privilege or the attorney
work product doctrine.
XIV. RIGHT TO BE HEARD BY THE COURT
27. All counsel shall use their best efforts to avoid duplication,
inefficiency and inconvenience to the Court, other parties, other counsel
and witnesses. Nothing stated herein,
however, shall be construed to diminish the right of any party to
be heard by the Court on matters that are not susceptible to joint or
common action, or as to which there is a genuine disagreement among
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