UC system's role in Enron suits gets Murky. (Up Front).With a federal judge about to name a lead plaintiff in the numerous class action suits against Enron Corp., the University of California The University of California has a combined student body of more than 191,000 students, over 1,340,000 living alumni, and a combined systemwide and campus endowment of just over $7.3 billion (8th largest in the United States). system, out $145 million in the massive collapse, finds itself at a crossroads. Its counsel, Milberg Weiss Founded in 1965 by attorneys Larry Milberg and Melvyn I. Weiss, Milberg Weiss (formerly known as Milberg Weiss & Bershad LLP) is a U.S. plaintiffs' law firm. Based in New York City, it is widely known for representing investors in securities class actions. Bershard Hynes & Lerach LLP LLP - Lower Layer Protocol , one of the premier law firms in shareholder suits, has acknowledged in published reports that it is the subject of a federal grand jury probe. The revelation comes as Melinda Harmon, U.S. District Judge for the Southern District of Texas, in Houston, is expected to name the lead plaintiff in the Enron shareholder lawsuits within a week. The UC system, with the second-largest shareholder loss, is well positioned to become lead plaintiff because the Florida State Board of Administration, which lost $306 million, is embroiled em·broil tr.v. em·broiled, em·broil·ing, em·broils 1. To involve in argument, contention, or hostile actions: "Avoid . . . in a dispute with its money manager. The role of lead plaintiff has a distinct advantage because its counsel drives litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. strategy. Also, the lead plaintiff often gets to select its legal counsel to direct consolidated suits. UC spokesman Trey Davis dismissed news of the investigation, calling them "rumors," but acknowledged the challenges to the university system if the investigation progresses. "Milberg Weiss has indicated to us there is no merit to the rumors," Davis said. "If something substantive emerged, UC would obviously re-evaluate the situation." Calls to the U.S. Attorney's office in Los Angeles and to Milberg Weiss partner Bill Lerach, UC's attorney, were not returned. UC lost $145 million in pension fund and endowment money, second only to the Florida State Board, which recently combined its case with the New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. pension funds, which lost $109 million. Word of the investigation comes at an unfortunate time, said Alan Cleveland, an attorney representing the New Hampshire Retirement System The New Hampshire Retirement System is the pension system of that United States state for its public employees. It consists of 51,000 state employees, divided into Group I or "Non-Emergency Personnel" such as teachers and clerks and Group II or "Emergency Personnel" such as , a pension fund that lost money from Enron's collapse but which has not filed suit against the company. "It's not often that the existence of a grand jury investigation gets leaked," Cleveland said. "They're obliged to keep it under wraps. The fact that stuff is leaking out is curious, particularly as the judge is ramping up for a lead plaintiff. If I were the University of California, I would be a little annoyed." |
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