Judge OKs $72.5M Arthur Andersen settlement in Enron shareholder lawsuit Holly Manges Jones at 8:35 AM ET
[JURIST] A US federal judge has approved a settlement under which Arthur Andersen [Wikipedia backgrounder] will pay $72.5 million to investors who sued the firm for its involvement in the Enron scandal [JURIST news archive]. US District Judge Melinda Harmon [official profile] signed an order approving the settlement, ending the former accounting giant's involvement in a $40 billion class action lawsuit [plaintiff materials]. The University of California Board of Regents is the main plaintiff in the case and has already received over $7.3 billion from JPMorgan Chase, Citigroup and the Canadian Imperial Bank of Commerce. Merrill Lynch and Credit Suisse Group were also sued in the case, but they are seeking a ruling [JURIST report] that the case should never have been certified as a class action [opinion and order, PDF].
The US Supreme Court overturned [JURIST report] a 2002 obstruction of justice conviction [JURIST report] against Arthur Andersen for its involvement in the fallout of Enron [Wikipedia backgrounder], but the ruling did not come in time to save the accounting firm which is no longer in operation. FinancialWire has more.
Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible, ad-free format.