United States District Court, S.D. New York
August 4, 2005.
IN RE WORLDCOM, INC. SECURITIES LITIGATION. This Document Relates to: ALL ACTIONS.
The opinion of the court was delivered by: DENISE COTE, District Judge
On July 13, 2005, this Court issued an Order to Show Cause (the "July 13
Order") why respondents Roslyn Berger ("Berger"), John P. Karoussos
("Karoussos"), Pearl Chu, Jim Chu (together, "the Chus"), Tom Dawkins
("Dawkins"), and Marilyn Gale ("Gale") should not be enjoined from pursuing
NASD arbitration claims against the Citigroup Defendants to the extent those
claims relate to investments in securities issued by WorldCom.
Karoussos and Gale did not respond to the July 13 Order by the
specified date of July 20, 2005. The Citigroup Defendants having
applied for enforcement of the release and injunction contained
in the Judgment as against the claims asserted by Claimants in an
arbitration, having provided proof of service of the July 13,
2005 Order on counsel for Karoussos and Gale, and having
represented to the Court that neither Karoussos nor Gale opted
out of the class action; and having reviewed the Statements of
Claim submitted by Karoussos and Gale to the NASD, it is hereby ORDERED that Karoussos and Gale are enjoined from arbitrating any claims
relating to investments in securities issued by WorldCom.
IT IS FURTHER ORDERED that Karoussos and Gale are permanently
barred and enjoined from instituting, commencing or prosecuting,
either directly or in any other capacity, all claims of every
nature and description, known and unknown, arising out of or
relating to investments (including, but not limited to,
purchases, sales, exercises, and decisions to hold) in securities
issued by WorldCom, and/or in options or derivative instruments
based in whole or in part on the value of securities issued by
WorldCom (including Targeted Growth Enhanced Terms Securities
with respect to MCI WorldCom, Inc. and GOALs issued by UBS AG),
including without limitation all claims arising out of or
relating to any analyst research reports or other statements made
or issued by the Citigroup Defendants concerning WorldCom; any
disclosures, registration statements or other statements by
WorldCom; as well as all claims asserted by or that could have
been asserted by Plaintiffs or any member of the Class in the
Action against the Citigroup Releasees.
In addition, having been informed by counsel for the Citigroup
Defendants that resolution of the Chus' claims may be reached
without the aid of the Court, and having been informed that
Dawkins has withdrawn his claims relating to investments in
WorldCom, and having adjourned the show cause hearing for Berger
until August 26, 2005, it is hereby ORDERED that the show cause hearing scheduled for 10 a.m. on
August 4, 2005, is adjourned until August 26, 2005, at 9 a.m., in
Courtroom 11B, 500 Pearl Street, New York.
© 1992-2005 VersusLaw Inc.