As part of the Enron Corp. bankruptcy and related litigation, plaintiffs assert various claims against Deutsche Bank for fraudulently inducing them to invest an a special purpose entity (SPE) called Osprey Trust, an entity that held a number of assets transferred to it from one of the Enron entities. Defendant seeks to dismiss the claims under Fed. Rule Civ. Proc. 9(b) and 12(b). Other defendants settled with the plaintiffs. Because fraud claims are involved the heightened pleading standard of Rule 9(b) must be met in order to avoid a summary dismissal of the claim. Plaintiff must plead with particularity the circumstances constituting fraud or mistake. As to the common law claims, the court need not resolve the conflict of law issue as to whether New York or Texas law is to apply because there is no difference in the substantive law of those two states.
展开▼
