Andersen floats Enron settlement
By James Evans
Crain's Chicago Business
February 20, 2002
Andersen reportedly is willing to offer a settlement of $260 million to resolve fraud claims included in the class-action lawsuit brought by Enron Corp. shareholders, according to a published news report.
Andersen spokesman Patrick Dorton would not confirm or deny the USA Today report, referring instead to a company statement that said, in part: "Reaching out to the groups affected in this case is consistent with our commitment to address the issues raised by Enron's collapse in a straightforward and constructive manner."
The statement went on to say, "We think it is in the best interests of all parties to deal expeditiously and responsibly with what has occurred."
USA Today Wednesday reported that the settlement figure was suggested during a Feb. 14 conference call between Andersen's attorneys, New York-based Davis Polk & Wardwell and Houston-based Rusty Hardin & Associates, and the plaintiffs' lawyers. During the call, Andersen attorneys expressed concern that the Enron case could put the Big Five firm out of business, sources quoted by USA Today said.
According to the news article, Andersen is willing to pay $260 million in corporate insurance, plus an undisclosed amount of company assets. Shareholders could receive another $350 million from liability insurance covering Enron executives and board directors, the report said.
Roger Greenberg, a Houston-based plaintiffs' attorney with Milberg Weiss Bershad Hynes & Lerach, said the USA Today story was incorrect, but would not comment further. |
