Federal Judge Delays Decision on Distribution of Billions of Dollars in Enron Lawsuit
Judge delays decision on Enron fundsJUAN A. LOZANOAP News
Feb 29, 2008 23:25 EST
Enron Corp. shareholders and investors hoping to get their cut of more than $7.2 billion recovered as part of a lawsuit they filed in connection with the company's collapse are going to have to wait a little longer.
Feb 29, 2008 23:25 EST
Enron Corp. shareholders and investors hoping to get their cut of more than $7.2 billion recovered as part of a lawsuit they filed in connection with the company's collapse are going to have to wait a little longer.
A federal judge on Friday delayed a decision on whether to approve a plan to distribute the money, part of a $40 billion lawsuit alleging that financial institutions that worked with Enron participated in the accounting fraud that led to the company's downfall.
U.S. District Judge Melinda Harmon also held off on whether to approve $688 million in attorneys' fees being requested by San Diego-based Coughlin Stoia Geller Rudman & Robbins LLP, the law firm for the lead plaintiffs in the case. If approved, the attorneys' fees would be the largest in a securities fraud case.
After a 4 1/2 hour hearing during which attorneys, Enron investors and former Enron employees argued both for and against the distribution plan and the attorney fees, Harmon said she would make decisions on both issues as soon as possible.
Patrick Coughlin, attorney for the regents of the University of California, who are the lead plantiffs, called the plan to distribute the $7.2 billion "fair and reasonable."
"The plan is doing whatever it can to help employees get whatever they can," he said.
U.S. District Judge Melinda Harmon also held off on whether to approve $688 million in attorneys' fees being requested by San Diego-based Coughlin Stoia Geller Rudman & Robbins LLP, the law firm for the lead plaintiffs in the case. If approved, the attorneys' fees would be the largest in a securities fraud case.
After a 4 1/2 hour hearing during which attorneys, Enron investors and former Enron employees argued both for and against the distribution plan and the attorney fees, Harmon said she would make decisions on both issues as soon as possible.
Patrick Coughlin, attorney for the regents of the University of California, who are the lead plantiffs, called the plan to distribute the $7.2 billion "fair and reasonable."
"The plan is doing whatever it can to help employees get whatever they can," he said.
posted by Kangaroo Brisbane Australia at 1:56 PM
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