The University of California today added Toronto-Dominion Bank and the Royal Bank of Scotland to the list of defendants in a class-action lawsuit alleging fraud of shareholders in Enron Corp. stock. The filing, in U.S. District Court in Houston, follows the Nov. 24 release of a report by Enron bankruptcy examiner Neal Batson that found evidence that both banks knowingly assisted Enron officers in falsifying the company's financial statements, according to a University of California press release. The report found that Royal Bank of Scotland "had actual knowledge of the wrongful conduct" in Enron special purpose entities transactions in which the bank had participated, the release said. The report also found that Toronto-Dominion Bank participated in six bogus transactions with Enron with a total value of about $2 billion from December 1998 through December 2000, the release said.
Previously named defendants in the shareholders' lawsuits are: J.P. Morgan Chase, Citigroup, Merrill Lynch, Credit Suisse First Boston, Canadian Imperial Bank of Commerce, Bank of America, Barclays Bank, Deutsche Bank and Lehman Brothers. Spokesmen for the banks could not be reached for comment.