According to the docket posted, on July 14, 2003, the Court entered the certified copy of the Judgment from the Fifth Circuit Court of Appeals. The Judgment of the District Court was affirmed. Further, the plaintiffs-appellants were ordered to pay to defendants-appellees the costs on appeal.
Previously, on March 21, 2002, the Court entered the Memorandum and Order granting the defendants’ motion to dismiss the complaint for failure to state a claim. The Court further entered the Final Judgment dismissing the case with prejudice as to all defendants except Enron Corporation. Enron Corporation was dismissed without prejudice. On June 7, 2002, the Court entered the Order denying plaintiffs’ motion to alter or amend the judgment, and the plaintiffs filed a notice of appeal.
The complaint charges defendants with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges that the registration statement and prospectus issued in connection with the IPO and the Company's press releases and public statements contained materially false and misleading information regarding Azurix's financial condition and prospects. Specifically, the complaint charges that defendants misrepresented and failed to disclose that several large water supply and wastewater privatization projects that Azurix's near term revenues were dependent on were postponed or cancelled at the time of the IPO. The dissemination of this materially misleading information caused Azurix's common stock to be artificially inflated throughout the Class Period.