IN RE LERNOUT & HAUSPIE SECURITIES LITIGATION

Nos. CIV.A.00-CV-11589-PBS, CIV.A.02-CV-10302-PBS, CIV.A.02-CV-10303-PBS, CIV.A.02-CV-10304-PBS.

286 B.R. 33 (2002)

In re LERNOUT & HAUSPIE SECURITIES LITIGATION. Gary B. Filler, et al., Plaintiffs, v. Jo Lernout, et al, Defendants. Stonington Partners, Inc., et al, Plaintiffs, v. Carl Dammekens, et al., Defendants. Paul G. Bamberg, et al., Plaintiffs, v. KPMG, LLP, et al., Defendants. Janet Baker, et al., Plaintiffs, v. KPMG, LLP, et al., Defendants.

United States District Court, D. Massachusetts.

November 18, 2002.


Attorney(s) appearing for the Case

Steven E. Cauley, Cauley, Geller, Bowman & Coates, Little Rock, AR, Michael G. Lange, Alicia M. Duff, Jeffrey C. Block, Berman, DeValerio, Pease, Tabacco, Burt & Pucillo, Boston, MA, W. Todd Ver Weire, Paul J. Geller, Gene Cauley, Cauley, Geller, Bowman & Coates, LLP, Little Rock, AR, Glen DeValerio, Berman, DeValerio, Pease, Tabacco, Burt & Pucillo, Boston, MA, Curtis L. Bowman, Cauley, Geller, Bowman & Coates, LLP, James P. Bonner, Ralph M. Stone, Lee S. Shalov, Kenneth A. Ricken, Shalov, Stone & Bonner, New York City, Robert P. Frutkin, Stuart H. Savett, Barbara A. Podell, Savett, Frutkin, Podell & Ryan, Philadelphia, PA, Bernard M. Gross, Deborah R. Gross, Law Office of Bernard M. Gross, Philadelphia, PA, Richard A. Lockridge, Lockridge, Grindal, Nauen & Holstein, Minneapolis, MN, Lisa J. Rodriguez, Rodriguez & Richards, LLC, Haddonfield, NJ, Thomas L. Earp, Earp Cohn, P.C., Westmont, NJ, Michael D. Donovan, David A. Searles, Donovan Searles, LLC, Philadelphia, PA, for plaintiffs.

William R. Moorman, Stephen Wald, Craig & Macauley, P.C., Arnold P. Messing, Kevin J. Lesinski, Choate, Hall & Stewart, Boston, MA, Michael P. Carroll, Diem-Suong T. Nguyen, William Fenrich, Davis, Polk & Wardwell, New York City, John B. Missing, Herbert Thomas, Ellen D. Marcus, Debevoise & Plimpton, Washington, DC, James S. Dittmar, Sanjit S. Korde, James O. Fleckner, Hutchins, Wheeler & Dittmar, Boston, MA, Donald Chase, Franklin R. Weissberg, David A. Piedra, Peter D. Weinstein, Rachelle L. DeGregory, Morrison, Cohen, Singer & Weinstein, LLP, New York City, William Shields, Jonathan I. Handler, Day, Berry & Howard, Boston, MA, Bruce A. Baird, James A. Levine, Paul W. Schmidt, William D. Iverson, Covington & Burling, Washington, DC, Andrew Good, Silverglate & Good, Boston, MA, Roger E. Zuckerman, Steven M. Salky, Zuckerman Spaeder LLP, Washington, DC, Michael P. Connolly, Murtha, Cullina, Roche, Carens & DeGiacomo, Boston, MA, Frank Rozzano, Tara J. Holubar, Robert J. Kaler, Gadsby & Hannah LLP, Douglas H. Meal, Emily F. Klineman, Ropes & Gray, Boston, MA, Bradley A. Harsch, Philip L. Graham, Jr., Stephanie G. Wheeler, Sullivan & Cromwell, New York City, Theodore Edelman, Sullivan & Cromwell, London, England, Vincent M. Amoroso, Erik Lund, Posternak, Blankstein & Lund, Boston, MA, David N. Ellenhorn, Louis M. Solomon, Teresa A. Gonsalves, Solomon, Zauderer Ellenhorn, Frischer & Sharp, New York City, Thomas W. Evans, Janet B. Fierman, Cohen & Fierman, LLP, Boston, MA, John W. Polk, Baker & McKenzie, Washington, DC, Nelson Callahan, Hill & Barlow, Boston, MA, John A.D. Gilmore, Hill & Barlow, P.C., Boston, MA, George A. Salter, John A. Redmon, Nicholas W.C. Corson, Hogan & Hartson, LLP, New York City, Anthony M. Feeherry, Sarah E. Walters, Gus P. Coldebella, Goodwin Procter LLP, Boston, MA, for defendants.


MEMORANDUM AND ORDER

SARIS, District Judge.

INTRODUCTION

Sed quis custodiet ipsos custodes?1 But who will guard these guardians? This dispute involves securities fraud claims against an outside Board of Directors, including the Audit Committee, of a now bankrupt speech recognition software corporation, Lernout & Hauspie Speech Products, N.V. ("L & H"). The proposed class action

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