Plaintiffs’ Cert. Petition Denied in Enron Class Action Litigation
January 23, 2008
On January 22, 2008, the Supreme Court of the United States denied the plaintiffs’ petition for a writ of certiorari in the Enron federal securities class action litigation, allowing the ruling of the United States Court of Appeals for the Fifth Circuit to stand. The Supreme Court rejected the plaintiffs’ petition following its recent ruling in Stoneridge Investment Partners, LLC v. Scientific-Atlanta, Inc., et al., a case that presented similar legal issues as the Enron securities action. In March 2007, the Fifth Circuit, located in New Orleans, reversed and remanded the district court’s class certification decision in the class action in which the Firm’s client, Credit Suisse, is a defendant. The class had been seeking approximately $40 billion in damages. The Fifth Circuit held that Credit Suisse and other banks did not have a fiduciary obligation to Enron’s shareholders and no duty of disclosure, and therefore plaintiffs are not entitled to a presumption of classwide reliance. The Fifth Circuit also held that plaintiffs are not entitled to a fraud-on-the-market presumption because the banks did not make any misrepresentations to the market, and their alleged actions do not rise to the level of a primary violation of the securities laws.
Cravath partner Richard W. Clary argued the Fifth Circuit appeal on behalf of Credit Suisse. Mr. Clary was previously appointed by Judge Harmon (Federal District Court for the Southern District of Texas) and Judge Gonzalez (Federal Bankruptcy Court for the Southern District of New York) to be liaison counsel for all of the financial institutions in the Enron mediation. Mr. Clary handled the opposition to the plaintiffs’ petition for certiorari for Credit Suisse, and also filed an amicus brief in Stoneridge on behalf of other clients.
Related Practices & Industries
People
- Photo
-
-
J.D., 1978, Harvard Law SchoolSears Prize, magna cum laude
-
B.A., 1975, Amherst CollegePhi Beta Kappa, magna cum laude
Education
Related News & Insights
Deals & Cases
June 17, 2025
Coupang, Inc.’s $1.5 Billion Revolving Credit Facility
Cravath represented the administrative agent, joint lead arranger and joint bookrunner in connection with a $1.5 billion revolving credit facility made available to Coupang, Inc., a leading global technology and commerce company providing retail, restaurant delivery, video streaming and fintech services to customers around the world under brands that include Coupang, Coupang Eats, Coupang Play and Farfetch. The transaction closed on June 2, 2025.
Deals & Cases
December 02, 2024
DraftKings Inc.’s Credit Facility
Cravath represented Morgan Stanley, as administrative agent, joint lead arranger, joint bookrunner and collateral agent, in connection with a $500 million revolving credit facility made available to DraftKings Inc. and certain of its subsidiaries. DraftKings Inc. operate as a digital sports entertainment and gaming company in the United States and internationally. The transaction closed on November 7, 2024.
Deals & Cases
October 29, 2024
Reynolds Consumer Products Inc.’s Revolving Credit Facility
Cravath represented the lead bookrunner in connection with a $700 million revolving credit facility made available to Reynolds Consumer Products Inc. Reynolds Consumer Products Inc. produces and sells products in cooking, waste and storage, and tableware product categories in the United States and internationally. The transaction closed on October 17, 2024.
Deals & Cases
August 21, 2024
Aptiv PLC’s $3.1 Billion of Credit Facilities
Cravath represented the administrative agent, joint lead arrangers and joint bookrunners in connection with $3.1 billion of credit facilities made available to Aptiv PLC and certain of its subsidiaries. Aptiv PLC is a leading global technology and mobility architecture company primarily serving the automotive sector. The facilities consisted of a $2.5 billion bridge credit facility, used to partially finance the accelerated share repurchase of up to $3.0 billion of Aptiv PLC’s ordinary shares, and a $600 million term loan facility. The transactions closed on August 1, 2024, and August 19, 2024.
