- 3 -On September 15, 2010, Mr. Pitt submitted his expert report. His report contained a keyopinion about the December 15, 2004 public statement by former Securities and ExchangeCommission Chief Accountant Donald Nicolaisen’s to the effect that “Fannie Mae’s accountingpractices did not comply in material respects with the accounting principles set forth in FAS 91and 133,” (Expert Report of Harvey L. Pitt ¶ 29), “created binding obligations on the recipient[Fannie Mae].” (
¶ 30.) Defendants provided their own expert reports on November 15, 2010,many of which responded to the opinions expressed in Mr. Pitt’s report.On February 24, 2011, Mr. Pitt provided sworn deposition testimony under oath inconnection with his expert report and the opinions contained therein. Mr. Pitt repeatedly testifiedthat he did not believe Mr. Nicolaisen had provided deposition testimony in this litigation,(February 24, 2011 Tr. of Deposition of Harvey Pitt at 29:5-8; 30:5-11), and that his opinion wasbased, at least in part, on that fact. (
at 33: 4-16.) This belief was erroneous, as Lead Counselwas well-aware. Mr. Nicolaisen was deposed in this litigation on November 19, 2009. Indeed,his deposition only took place following extensive motions practice initiated by Lead Plaintiffsover the opposition of the Securities and Exchange Commission, and both of the attorneys forLead Plaintiffs who represented Mr. Pitt at his deposition attended at Mr. Nicolaisen’s November2009 deposition. Inexplicably, neither attorney saw fit to apprise Mr. Pitt of this fact during anyof the approximately five occasions on which they met in preparation for Mr. Pitt’s deposition.(February 25, 2011 Tr. of Deposition of Harvey Pitt at 338:9-16.)
laws and rules to the conduct of U.S. business enterprises; the purpose andimportance of internal controls generally and the obligations of public companieswith respect to internal controls in light of the Sarbanes-Oxley Act of 2002 andother applicable laws and regulations; and the operation, functions and efficiencyof the U.S. financial market system, including the importance of accurateinformation for investors. (Lead Plaintiffs’ Disclosure of Expert Witnesses, May3, 2010 at 5).
Case 1:04-cv-01639-RJL Document 891 Filed 02/25/11 Page 3 of 8