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In re Worldcom, Inc. Securities Litigation

United States District Court, S.D. New York
Jan 30, 2004
MASTER FILE No. 03 Civ. 9403 (S.D.N.Y. Jan. 30, 2004)

Opinion

MASTER FILE 02 Civ. 3288 (DLC), No. 03 Civ. 9403

January 30, 2004

Gary M. Brown, Matthew J. Sweeney III, Dinsmore Shohl LLP, Nashville, Tennessee, for Plaintiff

Karl F. Dean, Nashville, Tennessee, for Plaintiff

Max W. Berger, John P. Coffey, Steven B. Singer, Beata Gocyk-Farber, John C. Browne, Jennifer L. Edlind, Bernstein Litowitz Berger Grossman LLP, New York, NY, for Lead Plaintiff in the Securities Litigation

Leonard Barrack, Gerald J. Rodos, Jeffrey W. Golan, Mark R. Rosen, Jeffrey A. Barrack, Pearlette V. Toussant, Barrack Rodos Bacine, Philadelphia, PA, for Lead Plaintiff in the Securities Litigation

Eliot Lauer, Michael Moscato, Michael Hanin, Curtis, Mallet-Prevost, Colt Mosle LLP, New York, NY, for Defendant Arthur Anderson LLP

Jay B. Kasner, Susan L. Saltzstein, Steven J. Kolleeny, Skadden Arps Slate Meagher Flom LLP, New York, NY, for Underwriter Defendants

Martin London, Richard A. Rosen, Brad S. Karp, Eric S. Goldstein, Walter Rieman, Marc Falcone, Joyce S. Huang, Paul Weiss Rifkind Wharton Garrison LLP, New York, NY, for Defendants Citigroup Global Markets, Inc. f/k/a Salomon Smith Barney, Inc., Citigroup Inc., and Jack Grubman

Robert McCaw, Peter K. Vigeland, Wilmer Cutler Pickering, New York, NY, for Defendants Citigroup Global Markets, Inc. f/k/a Salomon Smith Barney, Inc., Citigroup Inc., and Jack Grubman


MEMORANDUM OPINION AND ORDER


On December 15, 2003, plaintiff the Metropolitan Government of Nashville and Davidson County, Tennessee ("Nashville") served a motion to dismiss its complaint voluntarily pursuant to Rule 41(a), Fed.R.Civ.P., on the condition that it be permitted to participate in the securities class action arising out of the collapse of WorldCom, Inc. ("WorldCom"). The motion is opposed by defendants, but supported by Lead Plaintiff for the WorldCom class action. For the reasons stated in the Opinion and Order issued by this Court on January 26, 2004, to resolve a parallel motion brought on behalf of six actions filed by Milberg Weiss Bershad Hynes Lerach, the motion is granted with the following condition — plaintiff may not opt out of the class or seek in any way to continue its Individual Action.

This Memorandum Opinion and Order assumes familiarity with the background, discussion, and conclusions stated in the January 26 Opinion and Order, which are incorporated herein. See In re WorldCom, Inc. Sec. Litig., No. 02 Civ. 3288 (DLC), 2004 WL 113484 (S.D.N.Y. Jan. 26, 2004).

Nashville filed this action in the United States District Court of the Middle District of Tennessee on August 15, 2003, alleging violations of the Securities Act of 1933 ("Securities Act") and of the Securities Exchange Act of 1934. Defendants moved to dismiss certain claims in this action on December 2, and a scheduling order of January 20, 2004 requires Nashville to submit their opposition to the motion to dismiss by January 23, 2004.

The opposition to the motion to dismiss was originally due December 23, 2003.

Meanwhile, on December 15, Nashville served a motion for a voluntary dismissal of its action. Nashville principally argues that it is entitled to dismissal pursuant to Rule 41(a)(2), Fed.R.Civ.P. Nashville requests an opportunity to voluntarily dismiss its action in order to permit it to join the WorldCom class action. According to its counsel, Nashville requests the right to "participate in the class fully, and without prejudice to any of its rights, as if it had not filed its Individual Action" and "agrees that it will not opt out of the class".

The defendants have not shown that this dismissal should be conditioned on the payment of fees and costs. Their request for such an award is therefore denied.

Conclusion

The motion by the Metropolitan Government of Nashville and Davidson County to dismiss its action voluntarily pursuant to Rule 41(a) conditioned on it remaining a member of the WorldCom securities class action, is granted.

SO ORDERED.


Summaries of

In re Worldcom, Inc. Securities Litigation

United States District Court, S.D. New York
Jan 30, 2004
MASTER FILE No. 03 Civ. 9403 (S.D.N.Y. Jan. 30, 2004)
Case details for

In re Worldcom, Inc. Securities Litigation

Case Details

Full title:IN RE WORLDCOM, INC. SECURITIES LITIGATION, This Document Relates to…

Court:United States District Court, S.D. New York

Date published: Jan 30, 2004

Citations

MASTER FILE No. 03 Civ. 9403 (S.D.N.Y. Jan. 30, 2004)