IN RE RELIANCE SECURITIES LITIGATION

No. MDL 1304. No. Civ.A. 99-858-RRM.

135 F.Supp.2d 480 (2001)

In re RELIANCE SECURITIES LITIGATION William Eric Graham, et al., on behalf of themselves and all others similarly situated, Plaintiffs, v. Taylor Capital Group, Inc. f/k/a Cole Taylor Financial Group, Inc., Cole Taylor Bank, Jeffrey W. Taylor, Bruce W. Taylor, Sidney J. Taylor, Lori Cole, Shirley Cole, Cathy Cole Williams, Thomas L. Barlow, Howard B. Silverman, James D. Dolph, J. Christopher Alstrin, Michael Bernick, William S. Race, Ross J. Mangano, Solway F. Firestone, Melvin E. Pearl, Dean L. Griffith, KPMG Peat Marwick, LLP, ABN Amro Inc. f/k/a The Chicago Corp., and Sandler O'Neill Corporate Strategies, Defendants.

United States District Court, D. Delaware.

March 29, 2001.


Attorney(s) appearing for the Case

R. Bruce McNew, Taylor & McNew, LLP, Greenville, DE, Kevin Gross, Rosenthal, Monhait, Gross & Goddess, P.A., Helen J. Hodges, Jeffrey D. Light, Karen L. Thomas, Milberg Weiss Bershad Hynes & Lerach LLP, San Diego, CA, David B. Kahn, Mark E. King, David B. Kahn & Associates, Ltd., Northfield, IL, Robert F. Coleman, Robert F. Coleman & Associates, Richard Bemporad, Richard Dannenberg, Michelle Rago, Lowey Dannenberg Bemporad & Selinger, PC, White Plains, NY, Daniel Zazove, Barbara Young, Field & Golan, Chicago, IL, for plaintiffs.

James L. Holzman, Bruce E. Jameson, Prickett, Jones & Elliott, Wilmington, DE, Steven P. Handler, Steve Hoeft, David S. Rosenbloom, McDermott, Will & Emery, Chicago, IL, for defendants J. Christopher Alstrin, Jeffrey W. Taylor, Bruce W. Taylor, Sidney J. Taylor, Taylor Capital Group and Cole Taylor Bank.

R. Franklin Balotti, Lisa A. Schmidt, Peter B. Ladig, Richards, Layton & Finger, Wilmington, DE, Thomas I. Matyas, Richard M. Hoffman, Michael A. Kaeding, Wildman, Harrold, Allen & Dixon, Chicago, IL, for defendants Irwin Cole, Lori Cole, Shirley Cole, Cathy Cole Williams.

Arthur L. Dent, Potter Anderson & Corroon, LLP, Wilmington, DE, David Kristenbroker, Joseph Fogel, Leah J. Domitrovic, Theresa L. Davis, Freeborn & Peters, Chicago, IL, for defendant Melvin E. Pearl.

William H. Sudell, Jr., Martin P. Tully, Morris, Nichols, Arhst & Tunnell, Wilmington, DE, Timothy W. Mountz, Baker & Botts L.L.P., Dallas, TX, David D. Sterling, Baker & Botts L.L.P., Houston, TX, James R. Figliulo, Figliulo & Silverman, P.C., Chicago, IL, for defendant KPMG Peat Marwick LLP.

Francis J. Murphy, Murphy Spadaro & Landon, Wilmington, DE, Bruce R. Meckler, James H. Kallianis, Jr., Christopher E. Kentra, Meckler, Bulger & Tilson, Chicago, IL, for defendant Thomas L. Barlow.

Henry E. Gallagher, Jr., Connolly Bove Lodge & Hutz LLP, Wilmington, DE, John W. Rotunno, Stephen J. O'Neil, Sarah K. Johnson, Bell, Boyd & Lloyd LLC, Chicago, IL, for defendants Solway F. Firestone, Dean L. Griffith, Ross J. Mangano, William S. Race.

Richard D. Kirk, Morris, James, Hitchens & Williams LLP, Wilmington, DE, Steven R. Smith, Richard T. Greenberg, William F. Zieske, Ross & Hardies, Chicago, IL, for defendant Howard B. Silverman.

George W. Spellmire, John C. Everhardus, Jonathan S. Goodman, D'Ancona & Pflaum LLC, Chicago, IL, for James D. Dolph.

Michael D. DeBaecke, Blank Rome Comisky & McCauley, LLP, Wilmington, DE, Alton B. Harris, Steven M. Malina, Robert H. Griffith, Ungaretti & Harris, Chicago, IL, for defendant ABN AMRO Inc., as successor to The Chicago Corporation.

Lawrence C. Ashby, Ashby & Geddes, Wilmington, DE, John L. Hardiman, William L. Farris, Kieran B. Morrow, Sullivan & Cromwell, New York City, for defendants Sandler O'Neill Corporate Strategies, Sandler O'Neill & Partners L.P.


OPINION

McKELVIE, District Judge.

This is a securities class action. The dispute arises from the corporate restructuring and subsequent bankruptcy of the Cole Taylor Financial Group ("CTFG") in 1997 and 1998.

In 1981, Irwin Cole and Sidney Taylor formed CTFG as a holding company for a group of commercial banking institutions. It remained a private corporation until 1994 when the company made an initial public offering of its stock. In 1997...

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