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Court Rejects $40B Suit from Enron Investors

Posted Jan 23, 08 4:15 AM CST in Business 

(Newser) – The Supreme Court yesterday turned away an appeal from Enron investors seeking to sue banks that loaned the company money, Bloomberg reports. A lower court ruling had blocked the investors from organizing a $40 billion class-action suit against Merrill Lynch, Credit Suisse and other banks. The investors accused the banks of helping the energy trader disguise debt as loans and financing phony trades.

Investors earlier won $7.3 billion in settlements from other Enron banks. The turndown followed last week’s Supreme Court ruling that limited shareholder suits against a company’s banks and partners. The investors hoped to distinguish their case by showing it came "in the context of fraud perpetrated by financial professionals engaged in fraudulent dealings."

Source Bloomberg

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Enron Corp.'s headquarters are shown in Houston in this Jan. 17, 2002 file photo. The Supreme Court dealt Enron investors a defeat Tuesday, Jan. 22, 2008, rejecting their lawsuit alleging securities...   (Associated Press)
An unidentified woman carries a box from the then-Enron headquarters in downtown Houston in this Nov. 28, 2001 file photo. The Supreme Court dealt Enron investors a defeat Tuesday, Jan. 22, 2008, rejecting...   (Associated Press)
Former Enron executive Jeff Skilling leave the courthouse after the verdict in his fraud and conspiracy trial in this May 25, 2006 file photo in Houston. (AP Photo/Pat Sullivan, file)   (Associated Press)
Enron retiree George Maddox, who lost his retirement savings in the company's collapse, pauses during a press conference at the National Press Club in Washington, Tuesday, July 31,2007, to urge President...   (Associated Press)
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lawsuit  • US Supreme Court  • Merrill Lynch  • Barclays  • Credit Suisse  • Enron


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