HOUSTON: Enron Corp. shareholders and investors will split about $7 billion from financial institutions accused of participating in the fraud that caused the once-mighty energy company to collapse. The settlement amount was listed at $7.2 billion, a sum that has been accruing interest since 2002 and includes $688 million plus interest in attorneys fees.
Texas Attorney General Greg Abbott, who had previously filed court briefs in support of plaintiffs’ claims, also objected to the attorneys fees.
“General Abbott continues to object to giving millions of dollars to plaintiff lawyers when that money should go to the hardworking men and women who suffered from Enron’s demise,” said Jerry Strickland, a spokesman for Abbott’s office.
The deal, approved late Monday by US District Judge Melinda Harmon, and the attorneys fees are the largest in history in a US securities fraud case.
“We’re pleased that the court recognizes the tremendous amount of work, skill and determination required to overcome significant obstacles in this complicated case,” said Patrick Coughlin, attorney for the regents of the University of California, the lead plaintiffs.
About 1.5 million individuals and entities will be eligible to share in the distribution under the settlement plan. The attorneys fees will go to San Diego-based Coughlin Stoia Geller Rudman & Robbins LLP, the law firm representing the university.