Eight Penn Center, Suite 950
1628 John F. Kennedy Boulevard
Philadelphia, PA 19103
Phone: (215) 561-0950
Fax: (215) 561-0330
Email: [email protected]
December 7, 2006
NOTE: The Status Updates are cumulative. Please read all twelve updates.
Over 26,534 proofs of claims have been recorded to date. The Clerk of the Bankruptcy Court has advised me that all timely filed claims have been docketed. If you have questions regarding proofs of claim, I recommend you have your attorney research your questions. Please have your attorney research your claim to determine if it is filed.
I will not comment on pending litigation other than to describe the procedural status of such matters.
I have filed two separate lawsuits. The first lawsuit, filed on July 13, 2006 seeks damages in excess of $750,000,000 against certain directors, officers and financial institutions. This litigation will be referred to as the State Court Action.
The second lawsuit, filed on September 13, 2006, seeks damages in excess of $70,000,000 from certain financial institutions, the indenture trustees and others. This litigation was filed in Bankruptcy Court and will be referred to as the Bankruptcy Court Action.
Below is a current status as to both the State Court Action and the Bankruptcy Court Action.
State Court Action
July 13, 2006 Complaint Filed
August 11, 2006 Defendants Filed Notice of Removal from State Court
August 18, 2006 Plaintiff Filed Motion to Remand and Abstain
September 15, 2006 Defendants Filed Memorandum in Opposition the Motion to Remand and Abstain
September 25, 2006 Plaintiff Filed Reply to Response to Motion to Remand and Abstain
October 17, 2006 Defendants Filed Memorandum in Further Opposition to Motion to Remand and Abstain
The Federal District Judge must decide whether the matter should be heard in Federal or State
Court. Awaiting the Judge.s determination.
September 13, 2006 Complaint Filed
October 13, 2006 Defendant #1 Filed Motion to Dismiss
October 26, 2006 Plaintiff.s Answering Response to Defendant #1 Motion to Dismiss
November 7, 2006 Defendant #1 Filed Reply Brief in Further Support of Motion to Dismiss
November 10, 2006 Defendant #2 Filed Motion to Dismiss
November 17, 2006 Defendant #4 Filed Motion to Dismiss
November 24, 2006 Plaintiff.s Answering Response to Defendant #2 Motion to Dismiss
November 27, 2006 Defendant #3 Filed Motion to Dismiss
December 1, 2006 Defendant #2 Filed Reply Brief in Further Support of Motion to Dismiss
The Bankruptcy Court Judge must determine whether to dismiss the Trustee.s claims against
each of the Defendants or allow the Trustee to proceed with the lawsuit. Awaiting the Judge.s
Both the State Court Action and Bankruptcy Court Action will likely take years to litigate unless
settlements are reached between all parties.