IN RE JWP INC. SECURITIES LITIGATION

Nos. 92 Civ. 5815 (WCC), 93 Civ. 6830 (WCC), 94 Civ. 2201 (WCC) and 94 Civ. 3116 (WCC).

928 F.Supp. 1239 (1996)

In re JWP INC. SECURITIES LITIGATION. AUSA LIFE INSURANCE COMPANY, et al., Plaintiffs, v. Andrew T. DWYER, et al., Defendants. Melvin S. ARONOFF, et al., Plaintiffs, v. Andrew T. DWYER, et al., Defendants. AUSA LIFE INSURANCE COMPANY, et al., Plaintiffs, v. ERNST & YOUNG, Defendant.

United States District Court, S.D. New York.

Supplemental Clarifying Opinion June 12, 1996.


Attorney(s) appearing for the Case

Wechsler, Harwood, Halebian & Feffer L.L.P., New York City (Robert I. Harwood, Daniella Quitt, of counsel), Member of Class Plaintiffs' Executive Committee and Class Plaintiffs' Liaison Counsel, Wolf, Popper, Ross, Wolf & Jones, L.L.P., New York City (Robert M. Kornreich, Chet B. Waldman, of counsel), Schoengold & Sporn, P.C., New York City (Samuel P. Sporn, of counsel), Rabin & Garland, New York City (Allan K. Peckel, of counsel), Members of Class Plaintiffs' Executive Committee, Cadwalader, Wickersham & Taft, New York City (Debra Brown Steinberg, Edwin David Robertson, Haven C. Roosevelt, of counsel), for Plaintiffs AUSA Life Insurance Company, Bankers United Life Assurance Co., Crown Life Insurance Co., General Services Life Insurance Co., Life Investors Insurance Co. of America, Modern Woodmen of America, Monumental Life Insurance Co., The Mutual Life Insurance Co. of New York and The Prudential Insurance Co. of America.

Zwerling, Schachter, Zwerling & Koppell, L.L.P., New York City (Robin F. Zwerling, Joseph Lipofsky, of counsel), for Plaintiffs Melvin S. Aronoff and Rina Patricia Zilbermann.

Coblence & Warner, New York City (Howard S. Schrader, of counsel), for Defendant Andrew T. Dwyer.

Solomon Zauderer, Ellenhorn, Frischer & Sharp, New York City (Harry Frischer, David A. Proshan, of counsel), for Defendant Ernest W. Grendi.

Kramer, Levin, Naftalis & Frankel, New York City (Charlotte M. Fischman, Jeffrey W. Davis, Jonathan H. Canter, of counsel), for Defendant Joseph E. Grendi.

Shereff, Friedman, Hoffman & Goodman, L.L.P., New York City (Andrew J. Levander, Shari L. Steinberg, David S. Hoffner, Joseph I. Fontak, of counsel), for Defendant Joseph A. Gallo.

Kaye, Scholer, Fierman, Hays & Handler, New York City (Jay G. Strum, Jonathan L. Hochman, David B. Soskin, of counsel), for Defendants Innis O'Rourke, Jr., Craig C. Perry, Edmund S. Twining, Jr. and George M. Duff, Jr.

Schulte Roth & Zabel, New York City (Martin L. Perschetz, Howard O. Godnick, Hollis A. Bart, Lisa K. Buckser, Christopher P. Ronan, of counsel) and General Counsel's Office Ernst & Young, New York City (Patricia A. Connell, Michael J. Crane, of counsel), for Defendant Ernst & Young.


OPINION AND ORDER

WILLIAM C. CONNER, Senior District Judge:

The four above-captioned actions, which have been consolidated for all pre-trial purposes and which have been scheduled for a joint trial before this court, arise out of the collapse of JWP, Inc. ("JWP"). In 1980, JWP was a relatively small company whose business consisted primarily of owning a regulated water utility in the New York metropolitan area. Between 1984 and 1992, JWP expanded...

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