Enron investors set for final payout
Thursday 17 January 2008
In what looks likely to be the final chapter in a six-year legal saga, investors in the collapsed energy company Enron are learning this week that they will receive an average $6.79 per share in compensation.
Investors paid up to $90 (£46) a share for a stake in what was once one of the biggest and best-respected companies in the US, but which was revealed to be a financial house of cards kept upright by a string of complex accounting frauds.
Its bankruptcy in 2001 unleashed a slew of legal actions. A $7.2bn compensation fund has been amassed, thanks to class action lawsuits against the banks which did business with Enron, banks which shareholders allege were aiding and abetting a fraud.
The settlement is the largest ever in a securities fraud case.
About 1.5 million Enron investors who bought shares or bonds between 1997 and 2001 are involved in the lawsuit. This week they have been receiving letters laying out details of the compensation fund and notifying them of a 29 February court hearing that will settle its distribution and rule on whether the lawyers involved can take a 10 per cent cut.
Some plaintiffs still hope that the fund could be topped up further, since some banks have refused to pay into it. However, a Supreme Court ruling this week severely limited the scope for shareholder lawsuits against the business partners of fraudulent companies.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
iJobs Money & Business
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...
£20000 - £25000 per annum + OTE £35000: SThree: SThree are a global FTSE 250 b...
£20000 - £25000 per annum + OTE £35K - £45K: SThree: SThree Group have been we...