Enron Class-Action Trial Bumped to 2006

Get used to the word Enron, it is here to stay for some time to come. As criminal cases wind their way through the courts, the trial for the class-action lawsuit filed by former employees and shareholders has been postponed again—this time to 2006.

U.S. District Judge Melinda Harmon set an Oct. 16, 2006 trial date this week, which is the third time a trial date has been set. Harmon was overly optimistic back in 2002 when she set a 2003 trial date to deal with the thousands of claims filed in 2001. The 2003 date was later postponed to 2005 and now to 2006.

According to the Houston Chronicle, the enormous number of depositions to be taken and discovery to be filed is delaying the case. She has ordered 18 months of fast discovery, the Chronicle reported.

The judge and attorneys involved in the case expect that the lion’s share of it will be settled prior to trial. Both sides expect settlement to be more likely once more evidence is available to review.

As part of the Enron-related $40 million settlement with now-defunct Arthur Andersen, $15 million was set aside to pay the legal fees of plaintiffs in the class-action suit, the chronicle reported.

The Houston-based Enron imploded in 2001, taking with it the savings and jobs of many of its employees and investors who had put all their money into what was once the seventh largest company in America.

You may like these other stories...

Did you ever feel as if you're preparing taxes in the Twilight Zone? You may be more right than you think. Each year, professional preparers all over the country have to work in a shadowy reflection of the normal tax...
The split over convergenceDavid M. Katz of CFO wrote an interesting article on Thursday about the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) backing away from their...
World Health Organization backs higher tobacco taxes to cut smokingThe World Health Organization (WHO) approved guidelines on Wednesday urging countries to increase cigarette taxes to help discourage smoking, wrote Martinne...

Already a member? log in here.

Upcoming CPE Webinars

Oct 21Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience’s communication style.
Oct 22This webinar will include discussions of important issues in AU-C 800, Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks.
Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.
Oct 30Many Excel users have a love-hate relationship with workbook links.