Perot Systems Corporation Prevails in Securities Class Action
LOS ANGELES (April 5, 2006) — On March 31, 2006, McDermott Will & Emery client, Perot Systems Corporation, prevailed in a securities class action seeking damages for the company's failure to disclose its alleged involvement in teaching Enron and other energy suppliers how to manipulate the California electricity market. Last week the trial court granted Perot Systems' motion to dismiss with prejudice. This litigation began in 2002 with a series of securities class action complaints filed in New York and Texas district courts. McDermott successfully consolidated all the actions in the Northern District of Texas. This recent victory for Perot Systems was McDermott's third consecutive successful representation of Perot arising out of these allegations.
In May 2005, Perot Systems won an important appeal in a California consumer class action seeking damages in excess of $10 billion based on the same allegations. In February 2004, McDermott successfully obtained dismissal of the lawsuit on the pleadings based both on federal preemption and state law grounds. The California Court of Appeal in Sacramento affirmed this judgment of dismissal, handing Perot Systems a complete victory.
In 2002, McDermott successfully defended Perot Systems against government investigations into allegations that it was involved in illegal manipulation of California's wholesale electricity markets in connection with the 2000-2001 California energy crisis. Following this result Perot Systems retained McDermott to defend it in several civil class actions that were filed upon the announcement of the government investigations.
The McDermott team representing Perot Systems throughout this entire litigation, included Los Angeles office partner-in-charge, Gordon Greenberg; and partners Rich Frey, Dan Chammas and Francisca Mok.
Perot Systems, based in Plano, Texas, delivers technology-based business solutions to help organizations worldwide control costs and cultivate growth. Perot Systems, a Fortune 100 company, offers a full array of services that support business strategies and facilitate improvements for customers in selected industries and the government sector.
McDermott Will & Emery's Trial Department delivers full litigation services throughout all of our offices. Our lawyers provide clients with trial skills and experience which are effectively used in the many areas of law and business where disputes arise. We are regularly engaged in all aspects of civil, regulatory and white-collar criminal defense litigation in U.S. and international forums. The Firm's Los Angeles office opened in 1987 in its Century City location. There are approximately 90 lawyers in this office servicing our local markets, multinational corporations, both public and private, as well as private individuals.
