Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Official citation and/or docket number and footnotes (if any) for this case available with purchase.

Learn more about what you receive with purchase of this case.

In re WorldCom

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK


March 24, 2006

IN RE WORLDCOM, INC. SECURITIES LITIGATION
THIS DOCUMENT RELATES TO:
NO. 04 CIV. 9388
JEFFREY C. BARBAKOW, PLAINTIFF,
v.
CITIGROUP INC., CITIGROUP GLOBAL MARKETS, INC. F/K/A SALOMON SMITH BARNEY, INC., JACK GRUBMAN, ARTHUR ANDERSEN LLP, AWSC SOCIETE COOPERATIVE, EN LIQUIDATION F/K/A ANDERSEN WORLDWIDE ORGANIZATION AND ANDERSEN WORLDWIDE S.C., AND DOES 1 THROUGH 200, INCLUSIVE, DEFENDANTS.

The opinion of the court was delivered by: Denise Cote, District Judge

MEMORANDUM OPINION AND ORDER

As part of the fourth tranche of motions to dismiss in the WorldCom Securities Litigation, the defendants have moved to dismiss the entirety of the complaint filed by Jeffrey C. Barbakow asserting "holder" claims under California law. Barbakow filed this action in California state court on June 24, 2004, approximately two years after WorldCom made its devastating disclosure of fraud. Barbakow filed an amended pleading on August 20, 2004 ("Complaint"). The action was removed to federal court on September 23, 2004, and transferred thereafter to this Court, where it was consolidated for pretrial purposes with the Securities Litigation.

The Complaint pleads five causes of action under California law. It pleads two claims for fraud and negligent misrepresentation, and a single claim for aiding and abetting a breach of fiduciary duty. Barbakow responds to the motions to dismiss by inter alia referring to facts not alleged in the Complaint and requesting leave to amend. Pursuant to a scheduling order in the Securities Litigation, Barbakow had a right to amend his complaint within twenty-one days of its arrival on this Court's docket, or by late December 2004. See In re WorldCom, Inc. Sec. Litig., 02 Civ. 3288, 2003 WL 21219037, at *5 (S.D.N.Y. May 22, 2003). Barbakow did not amend his pleadings at that time.

It remains to be seen whether Barbakow can successfully plead his five claims. He will be granted leave to amend, with the following conditions. He may add no new parties or claims. He must strike as defendants the John Does and any party he did not timely serve with the Complaint. He will not be granted a further opportunity to amend his pleading.

Conclusion

Barbakow may file a second amended complaint that conforms to the requirements of this Memorandum Opinion and Order if he does so by April 14, 2006. Any motion to dismiss is due May 12; any opposition is due May 26, 2006; any reply is due June 2. Two courtesy copies of all motion papers and pleadings shall be sent directly to Chambers by delivering them to the Courthouse Mailroom, 8th Floor, United States Courthouse, 500 Pearl Street, New York, New York.

SO ORDERED.

DENISE COTE United States District Judge

20060324

© 1992-2007 VersusLaw Inc.



Buy This Entire Record For $7.95

Official citation and/or docket number and footnotes (if any) for this case available with purchase.

Learn more about what you receive with purchase of this case.