LAWSUITS NEWS & LEGAL INFORMATION
Enron Scandal Fallout
This is a settlement for the Bankruptcy lawsuit.
New York, NY: (Mar-26-08) Several Enron creditors brought claims against Citigroup Inc., alleging that they played a role in the company's faulty bookkeeping that led to Enron's collapse and bankruptcy in 2001. Subsequently creditors brought charges against nearly a dozen banks, including Citigroup.
Sources stated that in a recent development in the case, Citigroup has entered into a settlement, in which it has agreed to pay $1.66 billion in claims to resolve the dispute with Enron creditors. Citigroup sources said that the deal marks a major milestone for creditors. The company said that it agreed to settle, to avoid the costs and risks associated with protracted litigation. Legal counsel for the plaintiffs claimed that Citi is the last company named in a suit against these major financial institutions to reach a settlement.
The settlement puts Enron a bit closer to returning money to both institutional creditors and the thousands of employees that lost their jobs and bringing to an end this corporate tragedy. Records show that Enron's collapse was followed by several other high-profile corporate scandals that involved WorldCom, Global Crossing, Adelphia and Tyco. The episodes were responsible for the passage of the Sarbanes-Oxley law that tightened oversight of how American companies are audited. [CNN MONEY: CITI AGREES TO PAY $1.7 BILLION IN ENRON DEAL]
Published on Mar-27-08
Sources stated that in a recent development in the case, Citigroup has entered into a settlement, in which it has agreed to pay $1.66 billion in claims to resolve the dispute with Enron creditors. Citigroup sources said that the deal marks a major milestone for creditors. The company said that it agreed to settle, to avoid the costs and risks associated with protracted litigation. Legal counsel for the plaintiffs claimed that Citi is the last company named in a suit against these major financial institutions to reach a settlement.
The settlement puts Enron a bit closer to returning money to both institutional creditors and the thousands of employees that lost their jobs and bringing to an end this corporate tragedy. Records show that Enron's collapse was followed by several other high-profile corporate scandals that involved WorldCom, Global Crossing, Adelphia and Tyco. The episodes were responsible for the passage of the Sarbanes-Oxley law that tightened oversight of how American companies are audited. [
Legal Help
If you have a similar problem and would like to be contacted by a lawyer at no cost or obligation, please click the link below.Published on Mar-27-08
