TCW/DW TERM TRUST 2000
Item 77E Legal Proceedings
Four purported class action lawsuits have been filed
in the Superior Court for the State of California, County
of Orange, against some of the Trustees and officers, one
of the underwriters, the lead representative of the
underwriters, the Adviser, the Manager and other defendants
- but not against the Trust - by certain shareholders of
the Trust and other trusts for which the defendants act in
similar capacities. These plaintiffs generally allege
violations of state statutory and common law in connection
with the marketing of the Trust to customers of one of the
underwriters. Damages, including punitive damages, are
sought in an unspecified amount. On or about October 20,
1995, the plaintiffs filed an amended complaint
consolidating these four actions. The defendants
thereafter filed answers and affirmative defenses to the
consolidated amended complaint. The defendants' answers
deny all of the material allegations of the plaintiffs'
complaint. In 1996, the plaintiffs voluntarily dismissed,
without prejudice, their claims against the two defendants
who were independent Trustees of the Trust. In March 1997,
all of the remaining defendants in the litigation filed
motions for judgment on the pleadings, seeking dismissal of
all of the claims asserted against them. The defendants'
motions were fully briefed by all parties and were the
subject of a hearing before the Court on April 18, 1997.
In July 1997, the Court denied the motion for judgment on
the pleadings. In August 1997, plaintiffs filed a motion
for class certification. In their motion, the plaintiffs
requested certification of a "nationwide" class of Term
Trust purchasers. On June 1, 1998, the Court granted in
part and denied in part the plaintiffs' motion for class
certification. The Court ruled that plaintiffs' motion was
"granted as to [a California] statewide class," but was
"denied as to a nationwide class." On October 13, 1998,
three separate class actions alleging similar claims on
behalf of the residents of the states of Florida, New
Jersey and New York were filed in the state courts of those
states. The defendants removed the Florida action to
federal court and the plaintiffs' motion to remand the
action to state court was denied. Motions to dismiss were
filed by the defendants in the Florida action on August 30,
1999, in the New Jersey action on July 26, 1999 and in the
New York action on September 10, 1999. The New Jersey
motion was denied by the court on September 27, 1999 and
the defendants have filed a motion to vacate. The motions
to dismiss in Florida and New York are pending. Certain of
the defendants in these suits have asserted their right to
indemnification from the Trusts. The ultimate outcome of
these matters is not presently determinable, and no
provision has been made in the Trust's financial statements
for the effect, if any, of such matters.
Paraleg/NSAR/item77e.200
