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Case Status:    DISMISSED    
On or around 10/27/2005 (Date of order of final judgment)

Filing Date: November 15, 2004

According to the Judgment in a Civil Case, filed on October 27, 2005, the court grants defendant’s motion to dismiss plaintiffs’ First Amended Complaint with prejudice, except to the extent that plaintiffs’ claims encompass individual allegations of violations of California law. These individual claims are dismissed without prejudice.

On June 30, 2005, the plaintiffs filed a First Amended Complaint, and on August 1, 2005, the defendant filed a motion to dismiss the First Amended Complaint.

By the Memorandum and Order dated May 31, 2005, the Court grants the defendants’ motion to dismiss without prejudice. If plaintiffs intend to file an amended complaint, they shall do so within thirty (30) days of the order.

The original complaint, H&R Block Financial Advisors violated section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, as well as other common law rules. The complaint alleges that H&R Block committed this fraud through uniform sales presentations, omitting material facts in connection with the offer and sale of the Enron bonds including the serious and significant risks associated with the bonds due to Enron’s accounting and credit problems of which H&R Block was monitoring and well aware.

The complaint further alleges, among other things, that H&R Block failed to disclose internal information about their own downgrading of Enron securities, as well as secret incentives to brokers, higher than the usual commissions, to dump the Enron bonds on unsuspecting clients, which information was only recently publicly revealed. More specifically, the complain alleges that during the Class Period, and unbeknownst to plaintiffs and the Class members, defendant had internally removed an Enron security from its approved list because of concerns about, among other things, the company’s debt ratings and the SEC investigation. The complaint also alleges that similarly, H&R Block created a secret incentive system whereby registered representatives earned special sales credits of between $10 and $17.50 per Enron bond sold to Class members, more than double the typical commissions, in order to dump the Enron bonds as quickly as possible.

COMPANY INFORMATION:

Sector: Services
Industry: Personal Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol:
Company Market: Undetermined
Market Status:

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: N.D. California
DOCKET #: 04-CV-04848
JUDGE: Hon. Marilyn H. Patel
DATE FILED: 11/15/2004
CLASS PERIOD START: 10/29/2001
CLASS PERIOD END: 11/27/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cotchett Pitre Simon & McCarthy
    San Francisco Airport Office Center, 840 Malcolm Road, Suite 200, Cotchett Pitre Simon & McCarthy, CA 94010
    650.697.6000 650.697.0577 · info@cpsmlaw.com
No Document Title Filing Date
COURT: N.D. California
DOCKET #: 04-CV-04848
JUDGE: Hon. Marilyn H. Patel
DATE FILED: 06/30/2005
CLASS PERIOD START: 10/29/2001
CLASS PERIOD END: 11/27/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cotchett Pitre Simon & McCarthy
    San Francisco Airport Office Center, 840 Malcolm Road, Suite 200, Cotchett Pitre Simon & McCarthy, CA 94010
    650.697.6000 650.697.0577 · info@cpsmlaw.com
No Document Title Filing Date