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| Enron's scandal forced corporate America to
clean up its act (Agencies) |
Eighteen former Enron directors have agreed a $168m (￡9.85m) settlement
deal in a shareholder lawsuit over the collapse of the energy firm.
Leading plaintiff , the University of California, announced the news,
adding that 10 of the former directors will pay $13m from their own
pockets.
The settlement will be put to the courts for approval next week.
Enron went bankrupt in 2001 after it emerged it had hidden hundreds of
millions of dollars in debt.
Before its collapse, the firm was the seventh biggest public US company
by revenue.
Its demise sent shockwaves through financial markets and dented
investor confidence in corporate America.
"The settlement is very significant in holding these outside directors
at least partially personally responsible," William Lerach, the lawyer
leading the class action suit against Enron, said.
"Hopefully, this will help send a message to corporate boardrooms of
the importance of directors performing their legal duties," he added.
Under the terms of the $168m settlement - $155m of
which will be covered by insurance - none of the 18 former directors will
admit any wrongdoing
.
The deal is the fourth major settlement negotiated by lawyers who filed
a class action on behalf of Enron's shareholders almost three years ago.
So far, including the latest deal, just under $500m (￡378.8m) has been
retrieved for investors.
(Agencies) | 
Updated: 2005-01-10 11:35