Enron Agrees to $356 Million Settlement

[question everything]

Enron Agrees to $356 Million Settlement

Participants in Suit Will Likely Only Get 15% to 20% of Claim Amount, Lawyer Says

By ELLEN E. SCHULTZ
Staff Reporter of THE WALL STREET JOURNAL
July 11, 2005 9:08 p.m.

Enron Corp. agreed to a $356 million settlement with about 20,000 current and former Enron Corp. employees who lost money in their retirement plans when the company collapsed in late 2001, though they likely will see only a fraction of that amount.

The agreement will resolve not only a class action lawsuit but an action brought by the Department of Labor, which said it would give the Enron 401(k) and employee stock ownership plans a general unsecured claim of $305.4 million in Enron's bankruptcy. The proposed settlement also gives Enron's cash balance plan a claim of $50.9 million.

However, it is likely that participants will receive only up to 15% to 20% of the claim, said Lynn Sarko, an attorney with Keller Rohrback in Seattle who represented the Enron employees, as the final amount paid depends on the total amount of assets available for distribution in the bankruptcy court. The final agreement is subject to approval by the New York Bankruptcy and Texas district courts.

(snip)

Write to Ellen E. Schultz at [e-mail]

URL for this article:
http://online.wsj.com/article/0,,SB112112993920682948,00.html

[lostnfound]

1. One executive alone walked away with $650 million.

I just watched "Enron: The Smartest Guys in the Room" last night. Great movie.

[Robert Oak]

2. is this in theatres, DVD, streaming somewhere?

It is horrific...basically in the corporate scandal fines, it's more
like the state is saying "where's our take" and the fines never equal
the crime.

To me, the results of these "investigations" and "settlements" are a major greenlight to say "gotta a suit?", "can you get
an executive title?" then you have free rein to rip people off to the billions, no problem.

[lostnfound]

15. It's at a theatre here. A great movie. nt

[GCP]

4. I just saw it today

What a bunch of amoral thieves. They walked off with probably a billion between them. Lou Pai took $300 millions, Skilling got $300 millions, and fastow and Lay between them msut have had the same kind of cash.
I'm completely incensed at what they did.
They're totally responsible for the downfall of Gray Davis - he was a fall guy for their little thieving games in California. Remember when Limpballs was blaming the rolling blackouts on environmentalists not letting new power plants be built?
:grr::grr::grr::grr::grr::grr::grr::grr::grr:

[Zorra]

9. They are financial terrorists and should be prosecuted as terrorists.

They really hurt a lot of people and did a lot of damage.

[merwin]

3. So that's something like 18000 per employee, if distributed evenly.

Obviously, the higher ups are going to get more and the people who need the money will probably end up with about 5,000 each. Since they're going to settle for a fraction of that money, they'll probably only get about 1,000 each.

A definate victory for the common man!!!
:puke:

[chalky]

5. Oh, it's even worse than that: "However, it is likely that participants

will receive only up to 15% to 20% of the claim...."

Evenly distributed: $17,800 each
15 - 20%: $2670 - $3560

THAT. IS. CRAP.

[mom cat]

8. Just compassionate conservatism in action!

[question everything]

6. I didn't even know that Enron still exists

but I suppose now it just operates power lines instead of "making new investments."

[Roland99]

7. Where's the rest going? Blood-sucking lawyers? Like the tobacco case?

[evirus]

10. how is this fair?

and this is fair compared to a petty theif robbing a store because why?

[Kathy in Cambridge]

11. It's not fair. the settlement should have been in the billions.

[WhiteTara]

13. yep...99 years for a phone

10 months for stealing millions
BTW welcome to DU evirus
:hi:

[fortyfeetunder]

12. Really, and walk away scot free

While a man who steals a cell phone in Waco TX, down the street, gets 99 years in the slammer....go figure...

[Solly Mack]

14. and some fool will call this justice

unreal.disgustingly so

[fasttense]

16. Didn't Enron contribute at least that much to the repukes 2004 campaign?

But the employees who have had their money stolen get maybe a little over $4,000. Them conservatives sure love their crooks.

[underpants]

17. $6 Million in 2001 alone

January 29, 2002

Enron contributed nearly $6 million to both Republicans and Democrats over the past year. What did they get for the money they spent then and in the past? In four out of the last five years this hugely profitable company paid no taxes. In fact, according to The New York Times, they received $382 million in tax refunds. Further, if the House Republican economic stimulus package ever becomes law, they would receive another $254 million in tax rebates.

http://www.commondreams.org/views02/0129-09.htm

http://www.snopes.com/inboxer/outrage/enron.htm