by now you should all have by fax the dismissals filed today in the schultes case, including the gift to us of a dismissal of the contract counts (1-4) against the enron entities as well!  i spoke with counsel for sdi, who - despite confidentiality restrictions - confirmed my instinct that the defendants were concerned that they could be brought back in if the contract claims still existed against us.  i have to think harder as to whether they're really off the hook on the tort counts, but it's at least reassuring they thought so.

interesting as well, the defendants apparently urged the plaintiff to just dismiss us. his lawyer apparently rejected the suggestion with the explanation that we could pay too.  they responded "for what"? and apparently the plaintiff's counsel just repeated the same response.  if it offers any comfort, sdi's lawyer can't imagine any case schultes has to proceed against us on.

i asked why we hadn't been broached to join in, and the only explanation i got - which didn't seem really to be enough of an answer - was that this was just part of a bigger settlement of the securities cases.  for our info, have there been such settlements?

the "big" strategic question now is do we just wait to hear from the court or plaintiff's counsel, or do we push for a hearing.  thoughts?

Charna E. Sherman
Hahn Loeser & Parks  LLP
cesherman@hahnlaw.com
216-274-2556 (voice)
216-274-2555 (fax)

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