Enron (NYSE:ENE) Sued in Class Action Suit on Behalf of Employees and Former Employees
SEATTLE, November 21, 2001/Internet Wire/ -- Houstons Campbell, Harrison & Dagley L.L.P., and Seattles Keller Rohrback L.L.P. have filed the first ERISA breach of fiduciary duty lawsuit on behalf of participants and beneficiaries of Enrons savings 401(k) plan. The class period covers November 1, 2000, through the present. The lawsuit alleges that, under the law interpreting ERISA, Enron (NYSE:ENE) and the individual trustees of the Plan breached their fiduciary duties of loyalty and prudence in a variety of ways, including the failure to adequately disclose to the Plan participants and beneficiaries the risks of employer stock as a Plan investment, the failure to adequately monitor employer stock as a Plan investment, and the failure to address their own conflicts of interest as company insiders on the one hand and trustees of the Plan on the other. Rather than providing complete and accurate information to the Plans participants, it is alleged that Enron and the individual trustees withheld and concealed material information about the use of employer stock as a long-term savings vehicle, did not adequately monitor the employer stock for its suitability as an investment in a retirement plan, and did nothing to address their own conflicts of interest.
On October 16, 2001, Enron surprised the market when it announced that the Company was taking "non-recurring charges totaling $1.01 billion after-tax, or ($1.11) loss per diluted share," in the third quarter of 2001. Enron later revealed that a material portion of the charge related to the unwinding of investments with certain limited partnerships, controlled by Enrons CFO, and that the Company would be eliminating more than $1 billion in shareholder equity as a result of its unwinding of the investments. As this news began to be assimilated by the market, the price of Enron common stock dropped significantly. In addition, several recently filed securities suits allege that Enron executives engaged in extensive insider trading, gaining millions of dollars in personal proceeds. Enron plan participants have lost a substantial portion of their retirement earnings due to the drop in value of their retirement assets.
If you are a member of an Enron savings plan, wish to discuss this announcement, or have information relevant to the lawsuit, you may contact paralegal Jennifer Tuatoo, or any member of our team (Britt Tinglum, Jennifer Tuatoo, or Lynn Sarko) toll free at 800/776-6044, or via e-mail at email@example.com. You may also contact Houston counsel Robin Harrison of Campbell, Harrison & Dagley L.L.P. at 713/752-2332.
Seattles Keller Rohrback L.L.P. has successfully represented shareholders and consumers in class action cases for over a decade. Its trial lawyers have obtained judgments and settlements on behalf of clients in excess of several billion dollars. Lynn Sarko is managing partner of Keller Rohrback and leads the firms nationally recognized Complex Litigation Group. Keller Rohrback has served as lead or trial counsel in numerous high profile cases including suits against Microsoft, Phillip Morris, American Home Products, Lucent Technologies, NASDAQ, Sun America and Exxon. The firm currently serves as a lead counsel in similar suit on behalf of members of the Lucent Technologies Retirement Plan.
Keller Rohrback L.L.P.
1201 Third Avenue, Suite
Jennifer Tuatoo, 800/776-6044