IN RE WASHINGTON PUBLIC POWER SUPPLY SYS. LIT.

Nos. 91-16669, 91-16685 and 91-16687.

19 F.3d 1291 (1994)

In re WASHINGTON PUBLIC POWER SUPPLY SYSTEM SECURITIES LITIGATION. CLASS PLAINTIFFS; Chemical Bank, in its representative capacity as Trustee for Bondholders, Plaintiffs, and Bernstein, Litowitz, Berger & Grossman; Milberg, Weiss, Bershad, Specthrie & Lerach; Molloy, Jones & Donahue, P.C.; et al., Appellants, v. CITY OF SEATTLE; Oregon Public Entities, Benton Rural Electric Association, Washington; Washington Public Power Supply System; R.W. Beck and Associates; Ebasco Services Incorporated; United Engineers & Constructors, Inc.; Director Defendants, Participants' Committee Defendants; Public Utility District No. 1, of Klickitat County; United States of America, on Behalf of Itself and its Agency, The Bonneville Power Administration; State of Washington; Bonneville Power Administration, Defendants-Appellees. CLASS PLAINTIFFS, Plaintiff, and Lawrence Laub, Plaintiff-Appellant, v. CONTINENTAL ASSURANCE COMPANY, Plaintiff-Appellee, v. CITY OF SEATTLE; Oregon Public Entities, Benton Rural Electric Association, Washington; Washington Public Power Supply System; R.W. Beck and Associates; Ebasco Services Incorporated; United Engineers & Constructors, Inc.; Director Defendants, Participants' Committee Defendants; Public Utility District No. 1, of Klickitat County; United States of America, on Behalf of Itself and its Agency, The Bonneville Power Administration; State of Washington; Bonneville Power Administration, Defendants-Appellees. CLASS PLAINTIFFS, Plaintiff, and Continental Assurance Company, Plaintiff-Appellee, v. BERGER & MONTAGUE, P.A., Appellant, v. CITY OF SEATTLE; Oregon Public Entities, Benton Rural Electric Association, Washington; Washington Public Power Supply System; R.W. Beck and Associates; Ebasco Services Incorporated; United Engineers & Constructors, Inc.; Director Defendants, Participants' Committee Defendants; Public Utility District No. 1, of Klickitat County; United States of America, on Behalf of Itself and its Agency, The Bonneville Power Administration; State of Washington; Bonneville Power Administration, Defendants-Appellees.

United States Court of Appeals, Ninth Circuit.

Decided March 23, 1994.


Attorney(s) appearing for the Case

Arthur R. Miller, Cambridge, MA. Edward A. Grossman, Bernstein Litowitz Berger & Grossman, New York City. Michael J. Meehan, Molloy Jones & Donahue, Tucson, AZ. Leonard B. Simon, Melvyn I. Weiss, William S. Lerach, Milberg Weiss Bershad Specthrie & Lerach, San Diego, CA, and New York City, for appellants in No. 91-16669.

James E. Spiotto, Ann Acker, Wendy A. Grossman, Rosanne Ciambrone, Chapman and Cutler, Chicago, IL, for appellees.

David B. Gold, Paul F. Bennett, Alan R. Plutzik, San Francisco, CA, for appellants in No. 91-16685.

David Berger, Jay Robert Stiefel, William Appleby-Kellett, Berger & Montague, Philadelphia, PA. Michael J. Meehan, Molloy Jones & Donahue, Tucson, AZ, for appellants in No. 91-16687.

Before: NORRIS, WIGGINS, and LEAVY, Circuit Judges.


WILLIAM A. NORRIS, Circuit Judge:

Appellants are 25 law firms ("Class Counsel") who represented bondholders ("Class Plaintiffs") in the largest municipal bond default in history. From 1977 to 1983, the Washington Public Power Supply System ("WPPSS") sold bonds with a face value of $2.25 billion to finance construction of two nuclear power plants. The plants were never completed and WPPSS defaulted on its bond payments. In 1983, purchasers of the bonds filed a class...

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