Keller Rohrback LLP Announces Amended Class Action Complaint and Application for Preliminary Injunction Filed on Behalf of Current and Former Enron Employees
SEATTLE, November 28, 2001/Business Wire/ -- The law firms of Keller Rohrback L.L.P., Dalton Gotto Samson & Kilgard and Campbell, Harrison & Dagley L.L.P. have filed an Amended Complaint for Breach of Fiduciary Duty and Application for Preliminary Injunction Filed on Behalf of Current and Former Enron (NYSE:ENE) Employees. Plaintiffs request for themselves and the Class a preliminary injunction prohibiting Enron and the other Defendants from: 1) soliciting any releases which would affect the participants rights vis a vis the Plan; 2) taking any action that would bind the Plan to any course of conduct with respect to the proposed merger; and 3) making any decisions concerning the role of company stock as a Plan investment offering. This complaint is filed on behalf of participants and beneficiaries of Enrons savings 401(k) plan.
According to a New York Times November 28, 2001 article, up to 60% of the employees in some units are being laid off. Enron is presenting these departing employees, as part of their severance package, with a release that purports to release any claims they may have for breach of fiduciary duty in connection with the losses they have suffered in the Plan. The plaintiffs allege that this is an outrageous breach of Enrons fiduciary duty. It is improper for a fiduciary to solicit a release of its own liability from the participants in whose interests it is obliged to act in this manner.
In addition, the amended pleading notes that Enron raised doubts in its November 19, 2001 Form 10-Q filed with the SEC that it could continue as a going concern. These doubts have been magnified now that the proposed merger with Dynergy, Inc. has been canceled, Enron's bonds have been downgraded, and industry analysts are reported as expecting Enron to file for bankruptcy protection. According to the plaintiffs in the amended pleading filed today, these developments make it imperative that decisions about the use of Enron stock as an investment vehicle in the Plan be made by truly independent fiduciaries. They have therefore asked the court to appoint such a fiduciary as is permitted under ERISA.
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:
Mail inquiries to Keller Rohrback L.L.P., 1201 Third Avenue, Suite 3200, Seattle, WA 98101 (Enron ERISA Lawsuit).
Keller Rohrback L.L.P.
1201 Third Avenue, Suite
Jennifer Tuatoo, 800/776-6044