NEW YORK, Nov. 14, 2001 (PRIMEZONE) -- A lawsuit has been filed derivatively on behalf of Enron Corp. ("Enron" or the "Company") (NYSE:ENE) against the Company's Board of Directors and its outside auditors by an institutional investor. If you currently own Enron stock, you may be eligible to participate in the litigation. To obtain further information, you may contact the lawyers handling the case by calling Ashley Kim at (212) 964-0046 or (866) 348-7700 or by e-mailing us at shareholderrelations@spornlaw.com.
The complaint alleges that the Board of Directors of Enron, certain corporate officers -- some of whom sold substantial amounts of Enron shares at artificially inflated prices -- and Enron's purportedly independent outside auditor, Arthur Andersen LLP ("Andersen"), engaged in a plan and scheme to artificially inflate Enron's balance sheet and profit-and-loss statement for at least two years. Defendants did so by keeping certain financial transactions off their balance sheet by using partnerships run by officers of the Company in extreme conflicts of interest. The goal of the participants in this fraud was to obtain the highest credit rating possible. This enabled Enron to finance its program of product and geographic expansion at the lowest interest rates possible, while also gaining the best possible negotiating positions with creditors and trading partners in its core business. Unfortunately for current Enron shareholders, the defendants' plan will now cost Enron its very independence, with its rival Dynegy, Inc. acquiring it at a bargain-basement price. Defendants' plan has and will continue to cost the Company untold millions of dollars as the result of the loss of millions in market capitalization, securities class action litigation engendered by the Company's drop in stock price, and an on-going SEC investigation.
The claims asserted arise under Sections 10 and 20 of the Securities Exchange Act of 1934, common law breach of fiduciary duty, breach of contract, waste of corporate resources, negligence and contribution and indemnification. The complaint also alleges that certain top officers of Enron sold roughly $73 million worth of Enron stock at artificially inflated prices. The case is pending in the United States District Court for the Southern District of Texas before the Honorable David Hittner, Docket No. H-01-3892.
Schoengold & Sporn was established in 1962 and has specialized in securities fraud litigation for over 35 years. The firm was credited by the Wall Street Journal for its work in the Wedtech Securities case, which was settled for $77.4 million, as follows:
"$77.5 million settlement ... reached in a securities
fraud case stemming from the Wedtech scandal ... The
settlement with 29 defendants ... is believed to be one of
the largest ever in a civil ... case ... 'This is a
global settlement,' said Samuel Sporn, a plaintiffs'
attorney ... Mr. Sporn said the settlement represents
almost half of the more than $160 million in stocks and
bonds that Wedtech sold to the public between 1983 and
1986."
If you are a shareholder of Enron, you may wish to become involved in this action that seeks to recover funds for Enron itself. If so, please contact the persons below:
Ashley Kim, Esq. Schoengold & Sporn, P.C. 19 Fulton Street, Suite 406 New York, New York 10038 Tel: (212) 964-0046 Toll Free: (866) 348-7700 Fax: (212) 267-8137 E-mail: Shareholderrelations@spornlaw.com
More information on this and other class actions can be found at www.primezone.com/ca.