Patti, et al v. Xerox Corp, et al

Reply in Support of 154 Response re Notice of Supplemental Authority & Cross-Notice of Supplemental Authority

D. Conn.March 31, 2006

UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT In re XEROX CORPORATION ERISA LITIGATION, This Document Relates to: ALL ACTIONS. ) ) ) ) ) ) ) ) ) Master File No. 02-CV-1138 (AWT) CLASS ACTION MARCH 31, 2006 PLAINTIFFS’ REPLY IN SUPPORT OF CROSS-NOTICE OF SUPPLEMENTAL AUTHORITY Defendants’ attempt to distinguish the holding in Sherrill v. Federal Mogul Corporation Retirement Program Committee, No. 04-72949, 2006 U.S. Dist. LEXIS 4978 (E.D. Mich. Feb. 9, 2006), distorts the factual aspects of that case and ignores significant portions of the opinion that, as Plaintiffs previously discussed, bear directly on the issues now before this Court. Contrary to Defendants’ arguments, Federal-Mogul strongly supports denial of Defendants’ motion to dismiss. Several issues in Defendants’ response bear discussion. Defendants assert that the Federal-Mogul plan is not comparable to the Xerox plans because Federal-Mogul’s company match was all invested in company stock, which meant that all plan members had at least some Federal-Mogul shares, whereas not all Xerox participants held company stock. Thus, Defendants argue, Federal-Mogul does not lend support to Plaintiffs’ contentions that they have properly alleged claims for class-wide relief. Case 3:02-cv-01138-AWT Document 160 Filed 03/31/2006 Page 1 of 6 2 That argument is a red herring. As Plaintiffs have discussed previously, fiduciaries are not relieved of liability for plan losses simply because those losses may not “ultimately redound to the benefit of all participants.” See Plaintiffs’ Reply To Defendants’ Response To Plaintiff’s Sixth Notice Of Supplement Authority, quoting In re Schering-Plough Corp. ERISA Litig., 420 F.3d 231, 235 (3d Cir. 2005). As in Schering-Plough, Judge Cohn’s decision in Federal-Mogul properly focuses on allegations of losses caused to the plan’s assets, not the individual plan participants. 2006 U.S. Dist. LEXIS at *32-33 (complaint language requesting “Plan-wide relief under ERISA 409(a) to recover losses sustained by the” plans, “makes clear that [plaintiffs] are bringing this action for plan-wide relief”). Moreover, Defendants’ response completely ignores the issues of co-fiduciary liability and insider trading discussed in Plaintiffs’ initial brief regarding Federal-Mogul. The Federal-Mogul court’s discussion of those issues fully supports Plaintiffs’ arguments against Defendants’ Motion to Dismiss. Finally, with respect to plan document interpretation and other fact-based issues, Judge Cohn recognized that development of a complete factual record is required, and that the factual allegations set forth in the complaint are to be construed in the light most favorable to plaintiffs and subject to the liberal pleading requirements of Fed. R. Civ. P. 8(a). Id. at *29 n.13, 42-45, 59. Case 3:02-cv-01138-AWT Document 160 Filed 03/31/2006 Page 2 of 6 3 Judge Cohn’s decision in Federal-Mogul is another in an ever-growing body of case law holding that the determination of prudence is a question of fact, the resolution of which is premature on a motion to dismiss. Consequently, Defendants’ motion should be denied. Respectfully submitted, _________________________________ Goodman, Rosenthal & McKenna, PC John F. McKenna, Esq. - ct00104 977 Farmington Avenue, Suite 200 West Hartford, Connecticut 06106 860-231-2800/Fax-860-523-9235 Liaison Counsel Susman, Watkins & Wylie, LLP Charles R. Watkins John R. Wylie Two First National Plaza, Suite 600 Chicago, Illinois 60603 312-346-3466 Co-Lead Counsel Keller Rohrback L.L.P. Lynn Lincoln Sarko Laurie B. Ashton Elizabeth A. Leland 1201 Third Avenue, Suite 3200 Seattle, Washington 98101-3052 206-623-1900 (Seattle) 602-248-0088 (Phoenix) Co-Lead Counsel Case 3:02-cv-01138-AWT Document 160 Filed 03/31/2006 Page 3 of 6 4 Steering Committee Counsel: Law Offices of Daniel M. Harris Daniel M. Harris 150 North Wacker Drive, Suite 3000 Chicago, Illinois 60606 312-960-1802 Berger & Montague, P.C. Todd Collins 1622 Locus Street Philadelphia, Pennsylvania 19103-6365 (215) 875-3040 Schiffrin & Barroway Marc A. Topaz Joseph H. Meltzer 280 King of Prussia Road Radnor, PA 19087 (610) 667-7706 Malakoff Doyle & Finberg, P.C. Ellen M. Doyle 437 Grant Street, Suite 200 Pittsburgh, Pennsylvania 15219 (412) 481-8400 McTigue Law Firm J. Brian McTigue 5301Wisconsin Ave., NW, Suite 350 Washington, D.C. 20015 (202) 364-6900 Case 3:02-cv-01138-AWT Document 160 Filed 03/31/2006 Page 4 of 6 5 UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT In re XEROX CORPORATION ERISA LITIGATION, This Document Relates to: ALL ACTIONS. ) ) ) ) ) ) ) ) Master File No. 02-CV-1138 (AWT) CLASS ACTION MARCH 31, 2006 CERTIFICATION This is to certify that a copy of the foregoing, Plaintiffs’ Reply In Support of Cross-Notice of Supplemental Authority, was mailed this 31st day of March, 2006, via U.S. First Class mail, to the following counsel of record: Charles R. Watkins, Esq. J. Brian McTigue, Esq. Susman, Watkins & Wylie, LLP Bruce Rinaldi, Esq. Two First National Plaza McTigue Law Firm Suite 600 5301 Wisconsin Ave. NW Chicago, IL 60603 Ste 350 Washington, D.C. 20015 Daniel M. Harris, Esq. Michael D. Ryan Law Offices of Daniel M. Harris Senior Counsel 150 North Wacker Drive Xerox Corporation Suite 3000 800 Long Ridge Road Chicago, IL 60606 Stamford, CT 06904 Lynn Lincoln Sarko Erin M. Riley Steven J. Sacher Elizabeth A. Leland Kilpatrick Stockton LLP Keller Rohrback, LLP 607 14th Street, Suite 900 1201 Third Avenue, Suite 3200 Washington, D.C. 20005 Seattle, Washington 98l0l-3052 Case 3:02-cv-01138-AWT Document 160 Filed 03/31/2006 Page 5 of 6 6 Laurie B. Ashton William H. Boice Keller Rohrback, PLC Kilpatrick Stockton LLP 3101 North Central Avenue, Suite 900 1100 Peachtree Street, Suite 2800 Phoenix, AZ 85012-2600 Atlanta, GA 30309 Joseph H. Meltzer Benjamin H. Green, Esq. Marc A. Topaz Dreier LLP Schiffrin & Barroway, LLP One Landmark Square 280 King of Prussia Road 20th Floor Radnor, PA 19087 Stamford, CT 06901 Sherrie R. Savett Michael T. Hannafan & Associates, Joy Clairmont Ltd. Todd Collins One East Wacker Drive, Suite 1208 Berger & Montague, P.C. Chicago, IL 60601 1622 Locust Street Philadelphia, PA 19103 Ellen M. Doyle Malakoff Doyle & Finberg, P.C. 437 Grant Street, Suite 200 Pittsburgh, PA 15219 _________________________________ John F. McKenna, Esq. - ct00104 Goodman, Rosenthal & McKenna, P.C. 977 Farmington Avenue, Suite 200 West Hartford, CT 06107 860-231-2800/Fax-860-523-9235 Case 3:02-cv-01138-AWT Document 160 Filed 03/31/2006 Page 6 of 6