University of California added Royal Bank of Canada, Goldman Sachs and two law firms as defendants in its sweeping Enron litigation. The university, lead plaintiff in the federal class-action lawsuit, claimed that Royal Bank of Canada provided Enron with structured financing services knowing that Enron officials were trying to manipulate the company's financial statements, and that Goldman, Sachs violated securities law by signing a registration statement that contained false statements.
The university alleged Milbank, Tweed, Hadley & McCloy worked with Enron and its bankers to structure off-balance-sheet financing that promoted the energy company's "Ponzi scheme," while Andrew & Kurth wrote opinion letters backing up bogus accounting by Enron.
Stephen Blauner, partner at Milbank Tweed, said allegations against the firm are "completely without merit," and actually mirrored what Milbank had already disclosed. Officials at the other firms could not be reached for comment by press time.
Foundation taps enhanced firm
Compagnia di San Paolo in Italy hired Prudential Financial's quantitative management unit to manage €200 million ($256.9 million) in a U.S. large-cap enhanced index strategy, said Davide Tinelli, director-portfolio management at the £6.5 billion foundation. Funding came from cash. Cambridge Associates assisted.