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Court approves first settlement in Enron-Andersen lawsuits
Houston, Nov 08: A federal judge has approved the first settlement to emerge from federal shareholder and employee lawsuits stemming from Enron Corp.`s 2001 collapse.
Houston, Nov 08: A federal judge has approved the first settlement to emerge from federal shareholder and employee lawsuits stemming from Enron Corp.'s 2001 collapse.
More than a year ago, Andersen Worldwide SC -- now Awsc Societe Cooperative, the International Umbrella Organisation that used to include Chicago-based Arthur Andersen LLP -- agreed to pay USD40 million to settle claims of at least USD25 billion filed on behalf of Enron investors and former employees.
Late on Thursday, US district Judge Melinda Harmon gave final approval to the deal. As attorneys proposed, the money will be split, with USD25 million going to plaintiffs and USD15 million set aside to pay for costs associated with the litigation. Those costs don't include attorney fees, which will be requested in the future. AWSC previously served as the coordinating entity for the international network of Andersen firms and Arthur Andersen LLP. Altogether the onetime USD4 billion network had 85,000 employees, 28,000 of those at the US arm.
The network splintered when Arthur Andersen LLP was indicted and convicted last year of obstruction of justice for shredding and doctoring Enron-related documents in late 2001 to thwart a securities and exchange commission probe.
Andersen separated from AWSC, and remains a defendant in the investor and employee lawsuits. Bureau Report
Late on Thursday, US district Judge Melinda Harmon gave final approval to the deal. As attorneys proposed, the money will be split, with USD25 million going to plaintiffs and USD15 million set aside to pay for costs associated with the litigation. Those costs don't include attorney fees, which will be requested in the future. AWSC previously served as the coordinating entity for the international network of Andersen firms and Arthur Andersen LLP. Altogether the onetime USD4 billion network had 85,000 employees, 28,000 of those at the US arm.
The network splintered when Arthur Andersen LLP was indicted and convicted last year of obstruction of justice for shredding and doctoring Enron-related documents in late 2001 to thwart a securities and exchange commission probe.
Andersen separated from AWSC, and remains a defendant in the investor and employee lawsuits. Bureau Report