The Receivers website indicates that an Early Neutral Evaluation Conference (“ENE”) is scheduled for August 25, 2008. What is an ENE, and may investors attend?
An ENE is an informal, confidential, and off the record meeting of the parties to a federal lawsuit required under the Local Rules of the United States District Court for the Southern District of California, and is an ordinary part of the litigation process. The purpose of the ENE is to bring the parties to a suit together to discuss their respective claims and defenses, and to determine if there is any basis for an early settlement. If no settlement is reached at the ENE, the case will proceed. Here, the only parties to the case are the SEC, the defendants, and the relief defendants. The Receiver also has an interest. However, investors cannot attend the ENE, and do not need to take any action in connection with the ENE. While it is possible that some parties to the case may reach a settlement, the receivership case will not automatically terminate. The Receiver has been charged by the court with investigating the business and records of the various relief defendants, providing the co
