1 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK _____________________________________ AARON HOWARD, individually and on behalf of all others similarly situated, Plaintiff, v. THE BEAR STEARNS COMPANIES, INC., THE BEAR STEARNS COMPANIES, INC. EXECUTIVE COMMITTEE, JAMES E. CAYNE, ALAN D. SCHWARTZ, WARREN J. SPECTOR, SAMUEL L. MOLINARO, JR., ALAN C. GREENBERG, and JOHN DOES 1- 10, Defendants. _____________________________________ : : : : : : : : : : : : : : : : : Case No. 08-cv-02804 (RWS) [additional captions on following pages] PLAINTIFF SCOTT WETTERSTEN’S MEMORANDUM IN SUPPORT OF MOTION BY PLAINTIFFS AARON HOWARD AND SHELDEN GREENBERG TO: CONSOLIDATE ERISA ACTIONS; APPOINT INTERIM LEAD PLAINTIFFS, INTERIM CO-LEAD CLASS COUNSEL AND INTERIM LIAISON COUNSEL; AND FOR ENTRY OF PRETRIAL ORDER NO. 1 Case 1:08-cv-02804-RWS Document 33 Filed 04/18/2008 Page 1 of 8 2 _____________________________________ ESTELLE WEBER, individually, on behalf of the Bear Stearns Companies Inc. Employee Stock Ownership Plan, and all others similarly situated, Plaintiff, v. THE BEAR STEARNS COMPANIES, INC., CUSTODIAL TRUST COMPANY, JAMES CAYNE, ALAN SCHWARTZ, WARREN SPECTOR, SAMUEL MOLINARO, ALAN GREENBERG, and JOHN DOES 1-20, Defendants. _____________________________________ : : : : : : : : : : : : : : ; ; : Case No. 08-cv-02870 (RWS) _____________________________________ ANTHONY PISANO, individually and on behalf of all others similarly situated, Plaintiff, v. THE BEAR STEARNS COMPANIES, INC., JAMES E. CAYNE, ALAN D. SCHWARTZ, WARREN J. SPECTOR, SAMUEL L. MOLINARO, JR., ALAN C. GREENBERG, and JOHN AND JANE DOES 1-20, Defendants. _____________________________________ : : : : : : : : : : : : : : : Case No. 08-cv-03006 (UA) Case 1:08-cv-02804-RWS Document 33 Filed 04/18/2008 Page 2 of 8 3 _____________________________________ HANS MENOS, individually and on behalf of all others similarly situated, Plaintiff, v. THE BEAR STEARNS COMPANIES, INC., JAMES E. CAYNE, ALAN D. SCHWARTZ, WARREN J. SPECTOR, SAMUEL L. MOLINARO, JR., ALAN C. GREENBERG, and JOHN AND JANE DOES 1-10, Defendants. _____________________________________ : : : : : : : : : : : : : : : Case No. 08-cv-03035 (RWS) _____________________________________ IRA GERWITZ, individually and on behalf of all others similarly situated, Plaintiff, v. THE BEAR STEARNS COMPANIES, INC., JAMES E. CAYNE, ALAN D. SCHWARTZ, WARREN J. SPECTOR, SAMUEL L. MOLINARO, JR., ALAN C. GREENBERG, and JOHN AND JANE DOES 1-20, Defendants. _____________________________________ : : : : : : : : : : : : : : : Case No. 08-cv-03089 (RWS) Case 1:08-cv-02804-RWS Document 33 Filed 04/18/2008 Page 3 of 8 4 _____________________________________ DREW V. LOUNSBURY, Individually and On Behalf of All Others Similarly Situated, Plaintiff, v. THE BEAR STEARNS COMPANIES, INC.; JAMES E. CAYNE, ALAN C. GREENBERG; ALAN D. SCHWARTZ; PAUL A NOVELLY; FRANK T. NICKELL; FREDERICK V. SALERNO; VINCENT TESE; and JOHN AND JANE DOES 1-10, Defendants. _____________________________________ : : : : : : : : : : : : : : : Case No. 08-cv-03326 (RWS) _____________________________________ SHELDEN GREENBERG, Individually and On Behalf of All Others Similarly Situated, Plaintiff, v. THE BEAR STEARNS COMPANIES, INC., JAMES E. CAYNE, ALAN C. GREENBERG, JEFFREY MAYER, SAMUEL L. MOLINARO, JR., ALAN D. SCHWARTZ, WARREN J. SPECTOR, and JOHN AND JANE DOES 1-10, Defendants. _____________________________________ : : : : : : : : : : : : : : : Case No. 08-cv-03334 (RWS) Case 1:08-cv-02804-RWS Document 33 Filed 04/18/2008 Page 4 of 8 5 _____________________________________ SCOTT WETTERSTEN Individually and On Behalf of All Others Similarly Situated, Plaintiff, v. THE BEAR STEARNS COMPANIES, INC., JAMES E. CAYNE, ALAN D. SCHWARTZ, WARREN J. SPECTOR, SAMUEL L. MOLINARO, JR., ALAN C. GREENBERG, and JOHN AND JANE DOES 1-10, Defendants. _____________________________________ : : : : : : : : : : : : : : : Case No. 08-cv-03351 (RWS) _____________________________________ RITA RUSIN, individually and on behalf of all others similarly situated, Plaintiff, v. THE BEAR STEARNS COMPANIES, INC., JAMES E. CAYNE, ALAN D. SCHWARTZ, WARREN J. SPECTOR, SAMUEL L. MOLINARO, JR., ALAN C. GREENBERG, and JOHN AND JANE DOES 1-20, Defendants. _____________________________________ : : : : : : : : : : : : : : : Case No. 08-cv-03441 (UA) Case 1:08-cv-02804-RWS Document 33 Filed 04/18/2008 Page 5 of 8 6 Plaintiff Scott Wettersten (“Wettersten”), by his undersigned counsel, respectfully submits this Memorandum in support of the Motion by Plaintiffs Aaron Howard and Shelden Greenberg to: Consolidate ERISA Actions; Appoint Interim Lead Plaintiffs, Interim Co-Lead Class Counsel and Interim Liaison Counsel; and for Entry of Pretrial Order No. 1 (the “Howard Motion”). Plaintiffs in the above-captioned actions (the “ERISA Actions”)1 each filed substantially similar complaints in this District alleging that The Bear Stearns Companies, Inc. (“Bear Stearns” or the “Company”) and certain Bear Stearns committees, senior officers and directors (collectively, “Defendants”) violated the Employee Retirement Income Security Act of 1974 (“ERISA”). Plaintiffs in three of the ERISA Actions filed competing motions for consolidation, appointment of Lead Plaintiffs, and appointment for Lead or Co-Lead Counsel.2 Plaintiff Wettersten was prepared to file his own competing motion seeking consolidation, appointment as Lead Plaintiff, and his selection of counsel, Johnson & Perkinson (“J&P”), as Interim Lead Class Counsel pursuant to FED. R. CIV. P. 23(g)(3). As part of the preparation for this potential motion, J&P analyzed the competing motions, along with the memoranda, declarations, and exhibits filed in support thereof. In the spirit of compromise, to reduce litigation time and costs, and to reduce the burden on the Court, J&P contacted the Howard Plaintiffs’ selection of Lead Counsel, Schiffrin Barroway Topaz & Kessler, LLP (“SBTK”) and Keller Rohrback L.L.P. (“Keller Rohrback”). 1 The complaints filed, to date, in this District with substantially similar claims are as follows: Howard v. Bear Stearns Cos., Inc., et al., No. 08-2804 (RWS); Weber v. Bear Stearns Cos., Inc., et al., No. 08-2870 (RWS); Pisano v. Bear Stearns Cos., Inc., et al., No. 08-3006 (UA); Menos v. Bear Stearns Cos., Inc., et al., No. 08-3035 (RWS); Gerwitz v. Bear Stearns Cos., Inc., et al., No. 08-3089 (RWS); Lounsbury v. Bear Stearns Cos., Inc., et al., No. 08-3326 (RWS); Greenberg v. Bear Stearns Cos., Inc., et al., No. 08-3334 (RWS); Wettersten v. Bear Stearns Cos., Inc., et al., No. 08-3551 (RWS); and Rusin v. Bear Stearns Cos., et al., No 08-cv-03441 (UA). 2 In addition to the Howard Motion, Plaintiff Drew Lounsbury filed a competing motion (the “Lounsbury Motion”) and Plaintiffs Estelle Weber, Anthony Pisano, and Ira Gerwitz (the “Weber Plaintiffs”) filed a competing motion (the “Weber Motion”). Case 1:08-cv-02804-RWS Document 33 Filed 04/18/2008 Page 6 of 8 7 Through the course of several communications with SBTK and Keller Rohrback, and after careful consideration, Plaintiff Wettersten determined that his individual interests, and the interests of the putative class, would be best served in these ERISA Actions if the Court grants the relief sought in the Howard Motion by entry of the proposed Pretrial Order No. 1, attached thereto. Plaintiff Wettersten based this determination on several factors, including the qualifications of SBTK and Keller Rohrback, which speak for themselves, and an agreement between SBTK/Keller Rohrback and J&P that will facilitate J&P’s involvement in each stage of the litigation so as to guarantee protection of J&P’s client’s interests and to allow J&P to help protect the interest of the putative class. J&P is a litigation boutique that has been litigating class claims involving allegations of fraud and corporate misrepresentation for over 25 years.3 See In re: Sprint Corp. ERISA Litig., 443 F. Supp. 2d 1249, 1260 (D. Kan. 2006). Thus, while SBTK and Keller Rohrback ably satisfy the provisions of Rule 23(g)(1)(C) of the Federal Rules of Civil Procedure, and are “best able to represent the interests of class,” see Fed. R. Civ. P. 23(g)(2), contribution by J&P can only inure to the further benefit of the putative. As such, Plaintiff Wettersten respectfully requests that this Court enter the proposed Pretrial Order No. 1 submitted by the Howard Plaintiffs, which seeks consolidation of the 3 Dennis J. Johnson, Esq., senior partner at J&P, began his career in 1980, serving as an attorney in the Enforcement Division of SEC. In 1985, Mr. Johnson initiated a securities class action practice at a firm in Philadelphia. Since 1989, Mr. Johnson has been pursuing complex class action claims on behalf of consumers, shareholders, and, more recently, 401(k) plan participants in his own firm. In 1994, Mr. Johnson formed The Law Offices of Dennis J. Johnson, which became J&P on January 1, 2001. J&P recently served as one of three co-lead counsel to the participants in Sprint Corporation 401(k) plans in In re Sprint Corp. ERISA Litig., Civ. No. 03-2202- JWL, (D. Kan), in which Chief Judge John W. Lungstrum commended J&P and its co-lead counsel at the conclusion of the litigation, stating, “In sum, counsel litigated this case during its early phases aggressively and in a manner that demonstrated legal expertise in this area of the law. Then, once the opportunity for settlement came about, plaintiffs’ counsel pushed for creative settlement possibilities that worked to maximize the settlement value for the class as a whole as well as for the various categories of class members.” In re: Sprint Corp. ERISA Litig., 443 F. Supp. 2d 1249, 1260 (D. Kan. 2006). Additionally, J&P is one of three co-lead counsel in Carlson v. Xerox Corp., et al., Civ. No. 00-1621(AWT) (D. Conn.), a securities class action that recently settled for $750 million. Case 1:08-cv-02804-RWS Document 33 Filed 04/18/2008 Page 7 of 8 8 ERISA Actions, appointment of the Howard Plaintiffs as Lead Plaintiffs, and appointment of SBTK and Keller Rohrback as Co-Lead Counsel for the putative class. DATED: April 18, 2008 SHALOV STONE BONNER & ROCCO LLP By: /s/ Thomas G. Ciarlone, Jr. __________ Ralph M. Stone (rstone@lawssb.com) James P. Bonner (jbonner@lawssb.com) Thomas G. Ciarlone, Jr. (tciarlone@lawssb.com) 485 Seventh Avenue, Suite 1000 New York, NY 10018 Tel: (212) 239-4340 Fax: (212) 239-4310 JOHNSON & PERKINSON Dennis J. Johnson Jacob B. Perkinson James F. Conway, III Eben F. Duval 1690 Williston Road P.O. Box 2305 South Burlington, VT 05043 Tel: (802) 862-0030 Fax: (802) 862-0060 Case 1:08-cv-02804-RWS Document 33 Filed 04/18/2008 Page 8 of 8 Case 1:08-cv-02804-RWS Document 33-2 Filed 04/18/2008 Page 1 of 7 Case 1:08-cv-02804-RWS Document 33-2 Filed 04/18/2008 Page 2 of 7 Case 1:08-cv-02804-RWS Document 33-2 Filed 04/18/2008 Page 3 of 7 Case 1:08-cv-02804-RWS Document 33-2 Filed 04/18/2008 Page 4 of 7 Case 1:08-cv-02804-RWS Document 33-2 Filed 04/18/2008 Page 5 of 7 Case 1:08-cv-02804-RWS Document 33-2 Filed 04/18/2008 Page 6 of 7 Case 1:08-cv-02804-RWS Document 33-2 Filed 04/18/2008 Page 7 of 7
