On October 19, 2000, the Court entered the Stipulation and Order consolidating cases 2:00-cv-758 with member cases 2:00-cv-4139 for all purposes. According to the Stipulation and Order, previously, the Court granted the motion of defendants SBC Communications, Inc., Pacific Telesis Group, and Pacific Bell Telephone Company to dismiss the federal and state securities law causes of action in Haney v. Pacific Telesis Group, Case No. 00-758, some with, and some without, leave to amend. The remaining (ERISA) claims in the Haney action are substantially similar to the claims in the Gottlieb v. SBC Communications, Inc., Case No. 00-4139. The Court has already found the cases to be related. Thus, according to the Order, the Haney and Gottlieb actions are consolidated and plaintiffs in Gottlieb and Haney will jointly file and serve on counsel a Consolidated Amended Complaint. According to the docket for the Gottlieb action, on November 3, 2000, a Consolidated Amended Complaint was filed. On December 11, 2002, the Court entered the Final Order approving the settlement of that class action.
According to the Order entered on September 20, 2000, and signed by U.S. District Judge A. H. Matz, the Court grants the defendants’ motion to dismiss without prejudice the 5th, 7th and 8th causes of action in the plaintiffs’ Second Amended Complaint. Further, the Court grants the defendants’ motion to dismiss the 6th cause of action with prejudice. The plaintiffs filed a notice of appeal from this order, which was later voluntarily dismissed.
On February 28, 2001, the plaintiff filed a First Amended Complaint, and the defendants responded by filing a motion to dismiss the First Amended Complaint in April 2000. On May 8, 2000, the plaintiffs filed a Second Amended Complaint, and on June 20, 2000, the defendants filed a motion to dismiss causes 5 to 8 of the action in the Second Amended Complaint.
Plaintiffs bring this action pursuant to: (a) section 502 of the Employee Retirement Income Security Act of 1974 (ERISA), and the Securities Exchange Act of 1934, section 10(b) and Rule l0b-5 of the Securities Exchange Commission. The Court has subject matter jurisdiction over Plaintiffs' claims under ERISA section 502(e)-(f), 28, U.S.C. section 1132(e)-(f) 28, U.S.C. section 1331, and section 27 and 28 of the Exchange Act, and U.S.C. section 1391(b).
The original complaint alleges employees of Pacific Telesis Group (PTG), now SBC Communications Inc., accused the company of abdicating its fiduciary duties and manipulating 401(k) accounts for corporate gain. Among other claims, the plaintiffs say SBC executives violated federal law by "intentionally failing to give clear, timely and informative notice to the PTG Plans' participants of their rights" to keep their stock from being liquidated.