BILLING v. CREDIT SUISSE FIRST BOSTON LTD.

Docket Nos. 03-9284L, 03-9288CON.

426 F.3d 130 (2005)

Glen BILLING, individually and on behalf of all those similarly situated, Mita Aggarwal, as trustee of the Mita Aggarwal IRA and on behalf of all those similarly situated, Tom Barnett, David Pazarella, Henry Sklanowsky, Ross Wiczer, Wayne H. Jones, Efriam Simcha, Robert H. Thomas, Robert Grovich, Binh Nguyen, Michael Weiss, Kenneth Shives, Demetrios Petratos, Deming Zhous, Brad Harrison, Bert Zauderer, Glenn Kerr, Hans Reihl, Heinz Wahl, Bruce J. Jiorle, Mark Sculnick, Susan Katz, Anthony Voto, Estelle L. Augustine, Don K. Burris, Rachel Schwartz, Milton Pfeiffer, Roderick Lau, Raymond Litwin, Joe Braswell, Buddy Dukeman, Anupkumar Bhasin, Anita Budich, Troy Brooks, Philip Warner, Carlos Reeberg, Jerry Cobb, David Federico, Farideh Sigari, Matthew Weiner, Joe Goldgrab and Local 144 Nursing Home Pension Fund, Plaintiffs-Appellants, Bajrang Agarwal, Brad Harrison, Raymond Lance Huffman and Lennard Steinberg, Plaintiffs, v. CREDIT SUISSE FIRST BOSTON LTD., Goldman, Sachs & Co., Lehman Brothers Inc., Merrill Lynch, Pierce, Fenner & Smith, Inc., Morgan Stanley Dean Witter, BancBoston Robertson, Stephens, Inc., Citigroup Global Markets, Inc., J.P. Morgan & Co., Merrill Lynch & Co., Inc., Fidelity Distributors Corporation, Fidelity Brokerage Services, Inc., Fidelity Investments Institutional Services Co., Janus Capital Corporation, Comerica, Inc., Van Wagoner Capital, Van Wagoner Funds, Inc., and J.P. Morgan Securities, Inc., Defendants-Appellees.

United States Court of Appeals, Second Circuit.

Decided: September 28, 2005.


Attorney(s) appearing for the Case

Christopher Lovell (Gary S. Jacobson, on the brief), Lovell Stewart Halebian, LLP, New York, New York (Melvyn Weiss, J. Douglas Richards, Milberg, Weiss Bershad & Schulman LLP, New York, New York, on the brief; Fred Taylor Isquith, Mary Jane Fait, Thomas Burt, Wolf Haldenstein, Adler Freeman & Herz LLP, New York, New York, on the brief; Richard S. Schiffrin, Krishna Narine, Schiffrin & Barroway, LLP, Bala Cynwyd, Pennsylvania, on the brief; Howard B. Sirota, Rachell Sirota, Saul Roffe, Sirota & Sirota, New York, New York, on the brief), for Plaintiffs-Appellants in Appeal No. 03-9288L.

Russel H. Beatie (Philip J. Miller, Matthew P. Heiskell, Christopher J. Marino, on the brief), Beatie and Osborn LLP, New York, New York, for Plaintiff-Appellant, in Appeal No. 03-9284.

Robert B. McCaw (Ali M. Stoeppelwerth, Fraser L. Hunter, Jr., Noah A. Levine, Anjan Sahni, on the brief), Wilmer Cutler Pickering Hale & Dorr LLP, New York, New York, for Defendant-Appellee Citigroup Global Markets, Inc.

Andrew J. Frackman (Richard G. Parker, Brendan Dowd, on the brief), O'Melveny & Myers LLP, New York, New York, for Defendant-Appellee, Robertson Stephens, Inc.

Richard A. Cirillo (Rishona Fleishman, on the brief), King & Spalding LLP, New York, New York, for Defendant-Appellee Credit Suisse First Boston, LLC.

Moses Silverman (Philip G. Barber, on the brief), Paul, Weiss, Rifkind, Wharton & Garrison LLP, New York, New York, for Defendant-Appellee Lehman Brothers Inc.

Gandolfo V. DiBlasi (John L. Hardiman, Penny Shane, David M.J. Rein, on the brief), Sullivan & Cromwell LLP, New York, New York, for Defendants-Appellees The Goldman Sachs Group, Inc. and Goldman, Sachs & Co.

Steven Wolowitz, Mayer, Brown, Rowe & Maw LLP, New York, New York, for Defendant-Appellee Comerica, Inc.

Andrew B. Clubok (Richard Cordray, Brant W. Bishop, Steven A. Engel, on the, brief), Kirkland & Ellis LLP, Washington, District of Columbia, for, Defendant-Appellee Morgan Stanley & Co. Incorporated.

Paul Gonson (Glenn R. Reichardt, on the brief), Kirkpatrick & Lockhart LLP, Washington, District of Columbia (James N. Benedict, Jon R. Roellke, Clifford Chance U.S. LLP, New York, New York, on the brief), for Defendant-Appellee Merrill Lynch, Pierce, Fenner & Smith, Incorporated.

A. Robert Pietrzak (Joel M. Mitnick, on the brief), Sidley Austin Brown & Wood LLP, New York, New York, for Defendant-Appellee Deutsche Bank, Securities Inc.

Gerald J. Fields (Kevin C. Logue, on the brief), Paul Hastings Janofsky & Walker LLP, New York, New York, for Defendants-Appellees Van Wagoner Capital Management, Inc. and Van Wagoner Funds, Inc.

David W. Ichel (Jayma Meyer, on the brief), Simpson Thacher & Bartlett LLP, New York, New York, for Defendant-Appellee J.P. Morgan Securities, Inc.

Randy M. Mastro (John A. Herfort, Peter J. Beshar, on the brief), Gibson, Dunn, & Crutcher LLP, New York, New York, for Defendant-Appellee Bear, Sterns & Co., Inc.

Robert G. Jones, Ropes & Gray LLP, Boston, Massachusetts, for Defendants-Appellees, Fidelity Distributors Corporation, Fidelity Brokerage Services, LLC and Fidelity Investments Institutional Services Co., Inc.

Daniel A. Pollack, Pollack & Kaminsky, New York, New York, for Defendant-Appellee Janus Capital Management LLC.

Eliot Spitzer, Attorney General of the State of New York (Caitlin Halligan, Solicitor General, Michelle Aronowitz, Deputy Solicitor General, Jay L. Himes, Chief, Antitrust Bureau, Richard E. Grimm, Peter D. Bernstein, Assistant Attorneys General, Antitrust Bureau, Jean Lin, Assistant Solicitor General, on the brief; Paul J. Sirkis, Legal Intern, Antitrust Bureau, of counsel), New York, New York, for Amicus Curiae State of New York in Support of Plaintiffs-Appellants.

Giovanni P. Prezioso, General Counsel of the Securities and Exchange Commission, Washington, District of Columbia, for Amicus Curiae Securities and Exchange Commission in Support of Defendants-Appellees.

R. Hewitt Pate, Assistant Attorney General, Antitrust Division, Department of Justice, Washington, District of Columbia, for Amicus Curiae United States Department of Justice in Support of Plaintiffs-Appellants.

Before: OAKES, KATZMANN, and WESLEY, Circuit Judges.


WESLEY, Circuit Judge:

Plaintiffs allege an epic Wall Street conspiracy. They charge that the nation's leading underwriting firms entered into illegal contracts with purchasers of securities distributed in initial public offerings ("IPOs"). Through these contracts and by other illegal means, the underwriting firms allegedly executed a series of manipulations that grossly inflated the price of the securities after the IPOs in the so-called aftermarket. Plaintiffs contend...

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