United States District Court, S.D. New York
August 17, 2005.
In re WorldCom, Inc. Securities Litigation. Nickell
Citigroup Global Markets Holdings Inc.
The opinion of the court was delivered by: DENISE COTE, District Judge
Dear Judge Cote:
We represent defendant Citigroup Global Markets Holdings Inc.
("CGMHI") in Nickell v. Citigroup Global Markets Holdings
Inc., 04 Civ. 8474 (DLC) ("Nickell II"). Nickell II, which
is currently pending before Your Honor, is an individual action
in which plaintiffs Robert A. and Natalie Bert Nickell assert
claims against CGMHI (and no other defendant) for alleged
violation of the Texas Securities Act, common-law fraud,
statutory fraud, and gross negligence. CGMHI's Phase IV motion to
dismiss Nickell II is scheduled to be filed on August 19, 2005.
Mr. and Mrs. Nickell, the plaintiffs in Nickell II,
previously brought another action, Nickell v. Citigroup Global
Markets Inc. ("Nickell I"), which is currently pending in the
County Court at Law No. 3 in Dallas County, Texas. Nickell I
asserts all of the same causes of action asserted in Nickell
II, and in addition asserts causes of action for breach of fiduciary duty, grossly negligent
misrepresentation, negligent misrepresentation, and negligence,
based on substantially the same factual allegations as Nickell
II. The defendants in Nickell I are Citigroup Inc., Citigroup
Global Markets Inc. ("CGMI"), and a former CGMI broker. CGMI is a
subsidiary of CGMHI, the sole defendant in Nickell II.
Last Friday, the Honorable Sally Montgomery, who is presiding
over Nickell I in the Texas state court, conducted a hearing in
that action. The parties in Nickell I are now awaiting rulings
from Judge Montgomery on issues raised at the hearing.
Pursuant to Your Honor's order dated May 19, 2005, CGMHI is
currently scheduled to file a motion to dismiss the Nickell II
complaint on August 19, 2005. In light of the proceedings now
occurring in Nickell I, CGMHI respectfully requests an
adjournment to and including October 19, 2005, of the date on
which its Phase IV motion to dismiss Nickell II is due. Under
the proposed new schedule, plaintiffs' opposition papers would be
due on November 9, 2005, and CGMHI's reply papers would be due on
November 30, 2005. We are authorized by counsel for plaintiffs in
Nickell I and Nickell II, Will S. Snyder, Esq., to state that
plaintiffs support this request. This proposed briefing schedule
is identical to the current briefing schedule for the Phase IV
motions to dismiss in Crane v. Ebbers, No. 04 Civ. 9942
(DLC), and New Mexico State Investment Council v. Alexander,
No. 04 Civ. 8309 (DLC), as set forth in the stipulation and order
approved by Your Honor on August 11, 2005.
Thank you for your consideration of this request.
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