Corp-Ethics Home
Log In | Register New User
Home Company Search Related Articles Forum (new!)

Company Enron [Company Info]
  Track this Company (an email will be sent to you everytime a report is filed about this company)

Date Issue Title
9th Jan 2005 Fraud Investigation Enron bosses agree $168m payout

Report
Eighteen former Enron directors have agreed a $168m settlement deal in a shareholder lawsuit over the collapse of the energy firm.

Leading plaintiff, the University of California, announced the news, adding that 10 of the former directors will pay $13m from their own pockets.

The settlement will be put to the courts for approval next week.

Enron went bankrupt in 2001 after it emerged it had hidden hundreds of millions of dollars in debt.

Before its collapse, the firm was the seventh biggest public US company by revenue.

Its demise sent shockwaves through financial markets and dented investor confidence in corporate America.

"The settlement is very significant in holding these outside directors at least partially personally responsible," William Lerach, the lawyer leading the class action suit against Enron, said.

"Hopefully, this will help send a message to corporate boardrooms of the importance of directors performing their legal duties," he added.

Under the terms of the $168m settlement - $155m of which will be covered by insurance - none of the 18 former directors will admit any wrongdoing.

The deal is the fourth major settlement negotiated by lawyers who filed a class action on behalf of Enron's shareholders almost three years ago.

So far, including the latest deal, just under $500m (378.8m) has been retrieved for investors.

However, the latest deal does not include former Enron chief executives Ken Lay and Jeff Skilling. Both men are facing criminal charges for their alleged misconduct in the run up to the firm's collapse.

Neither does it cover Andrew Fastow, who has pleaded guilty to taking part in an illegal conspiracy while he was chief financial officer at the group.

Enron's shareholders are still seeking damages from a long list of other big name defendants including the financial institutions JP Morgan Chase, Citigroup, Merrill Lynch and Credit Suisse First Boston.

The University of California said the trial in the case is scheduled to begin in October 2006.

It joined the lawsuit in December 2001alleging "massive insider trading" and fraud, claiming it had lost $145m on its investments in the company.

Other Reports on Enron
Date Issue Company Report
26th Sep 2006 Fraud Investigation Enron Fastow gets six-year term
13th Aug 2006 Fraud Investigation Enron Prosecutors raise Enron boss fine
25th May 2006 Fraud Investigation Enron Lay and Skilling guilty
15th May 2006 Fraud Investigation Enron Enron bosses 'stole to pump egos'
11th May 2006 Fraud Investigation Enron Judge deals blow to Enron accused
26th Apr 2006 Fraud Investigation Enron Enron feared witch hunt, Lay says
24th Apr 2006 Fraud Investigation Enron Lay 'devastated' by Enron failure
18th Apr 2006 Fraud Investigation Enron Skilling defends Enron share sale
13th Apr 2006 Fraud Investigation Enron Skilling slams Enron prosecutors
12th Apr 2006 Fraud Investigation Enron Enron 'held no cookie jar fund'
11th Apr 2006 Questionable Practice Enron Skilling denies cover-up at Enron
10th Apr 2006 Fraud Investigation Enron I'm innocent says ex-Enron chief
3rd Apr 2006 Fraud Investigation Enron Key Enron witness 'lied in court'
22nd Mar 2006 Fraud Investigation Enron Enron treasurer tells of 'lies'
16th Mar 2006 Fraud Investigation Enron Enron whistleblower condemns Lay
14th Mar 2006 Fraud Investigation Enron Key Enron witness 'duped bosses'
9th Mar 2006 Fraud Investigation Enron Lay 'lied about Enron finances'
7th Mar 2006 Fraud Investigation Enron Enron bosses hid massive losses
1st Mar 2006 Fraud Investigation Enron Enron 'pretty fast and loose with its rules'
27th Feb 2006 Fraud Investigation Enron Enron money man 'raided reserves'
13th May 2005 Fraud Investigation Enron Former Enron executive sentenced
3rd Nov 2004 Fraud Investigation Enron Convictions in Enron fraud trial
28th Jun 2004 Other Issue Enron Enron ex-boss breaks his silence

Related Reports from the Utilities Industry
Company Issue Report
Powergen Questionable Practice Powergen fined over unfair policy
Westar Energy Fraud Investigation Ex-Westar CEO Wittig Gets 18-Year Sentence
Severn Trent Water Other Issue Severn Trent provided false information
Thames Water Other Issue Ofwat to fine Thames Water 12m
Severn Trent Water Other Issue Severn Trent Water to repay customers
 
Contact Us | Terms of Service | Privacy Policy | Add Report | Links
© 2006 Corp-Ethics.com | Corporate Ethics