Andersen Offers Enron Settlement, Reports Say
Thursday February 28 12:42 AM ET
dailynews.yahoo.com
WASHINGTON (Reuters) - Embattled auditor Andersen is
offering a total payment of $750 million dollars to settle
lawsuits stemming from its association with the fallen
Enron Corp, newspapers reported Thursday.
The Washington Post and USA Today said that under the
settlement, $250 million would come from an insurance
company co-owned by Andersen and its global affiliates
with the remaining $500 million to be paid out in $100
million increments over the next five years.
An Andersen spokesman had no immediate comment on
the reports.
Andersen has come under fire for its auditing role at
Enron amid questions about the energy company's
accounting for certain partnerships that were off its
balance sheets.
USA Today said Andersen's New York law firm, Davis
Polk & Wardwell, outlined the proposal Wednesday in a
meeting with the Securities and Exchange Commission
(news - web sites).
The newspapers, citing sources close to the talks, said
the settlement would cover all Enron-related legal
actions threatening the accounting firm, including a
federal class-action lawsuit filed by investors, a lawsuit
on behalf of 401 (k) retirees and any SEC enforcement
action.
The Washington Post cited a source close to the firm as
saying Andersen was also seeking to persuade the U.S.
Justice Department (news - web sites) not to indict the
firm.
The paper cited a source close to the firm as saying
Andersen was anxious to get the Enron litigation
settled, within two weeks, before corporations send out
annual ballots asking shareholders to ratify their choice
of independent auditors.
Both newspapers said SEC and Andersen
representatives declined comment on the settlement
efforts.
Andersen has been saying that under the Enron cloud
its very survival was threatened because it could have
difficulty holding on to corporate clients and top talent.
When Enron collapsed, Andersen's professional
judgements became the subject of federal, civil and
criminal investigations.
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