Andersen Worldwide to Settle Enron Suits
Thirteen months to the day after Andersen's U.S. firm was convicted of obstruction of justice, the network of Andersen affiliates outside the U.S. has announced plans to settle all Enron related lawsuits with a payment of $40 million.
Enron shareholders and employees will receive $25 million, and the remaining $15 million will be used to help fund litigation against former Enron executives, Andersen auditors, and other Enron professional advisors who may have contributed to the collapse of the energy giant.
The firm that audited Andersen's books, Andersen U.S., is not part of the announced settlement.
Judge Arthur J. Gonzalez of Federal Bankruptcy Court in Manhattan has approved the settlement of the affiliated firms, collectively known as Andersen Worldwide Société Coopérative.
Bloomberg News has also reported that Andersen Worldwide will pay $20 million to Enron creditors. Documents show that Enron creditors are owed about $67 billion in total. Last week, Enron revealed its bankruptcy reorganization plan, detailing recovery arrangements for 350 different classes of creditors.