Enron Class Action









Welcome to the Enron ERISA Litigation website that is designed to keep participants or beneficiaries of the Enron Corp. Savings Plan (401K), the Enron Corp. Employee Stock Ownership Plan (ESOP) and/or the Enron Corp. Cash Balance Plan (the "Plans") informed of the status of the Partial Settlements approved by the District Court for the Southern District of Texas.

These Partial Settlements resolve claims concerning certain fiduciaries of the Plans under the Employee Retirement Income Security's Act of 1974, ERISA.

December 7, 2006
Keller Rohrback announces Preliminary Approval of partial settlements with Jeffrey K. Skilling and the Estate of Kenneth L. Lay as well as the apportionment of the fund previously recovered in the settlement with Andersen Worldwide Societe Cooperative ("AWSC").  The proposed partial settlements are on behalf of all participants in Enron's ESOP and Savings Plan, during the period January 20, 1998 through December 2, 2001.

The proposed settlement with Mr. Lay's Estate provides a $12 million claim that ensures Tittle Plaintiffs will receive a fair share of any assets of the Estate that remain for distribution, if any, after all of the claims against the Estate have been processed.

The proposed settlement with Mr. Skilling provides the Tittle Plaintiffs with benefits that are contingent on the outcome of the criminal proceedings related to his conviction. If his conviction is affirmed on appeal,  a Victims'  Fund , exceeding $40 million will be administered by Judge Harmon in the consolidated ERISA and  Securities cases, with an allocation formula to be determined by the Court at a later date.  If his conviction is overturned on appeal, the Tittle Plaintiffs will receive $2.5 million in cash.

The proposed allocation of the $25 million AWSC settlement fund provides that 15% of the fund ($3.75 million) will be paid to the Tittle Plaintiffs.

The settlements provide that both Mr. Skilling and Mr. Lay's Estate will dismiss their appeals of the $85 million settlement previously approved by the Court, which will allow the distribution of those funds.

The settlements also preserve claims that participants have through the securities litigation.  Should the Court grant final approval to the settlements and the allocation, the Tittle ERISA litigation will come to a close and the remaining funds that have been created due to former settlements will be distributed.

Please access the documents below for additional information:

  • Note: Notices of the proposed settlement and proposed allocation mailed to class members answer common questions about the settlements and allocation. As explained in those notices, before the settlement becomes final several issues have to be resolved by the Court consistent with the terms of the Settlement Agreements.

1. Memorandum in Support of Proposed Settlements and Allocation

2. Preliminary Approval Order for Proposed Settlements

3. Preliminary Approval Order for Proposed Allocation

4. Settlement Agreement with the Estate of Kenneth L. Lay

5. Settlement Agreement with Jeffrey K. Skilling

6. Class Notice

7. Publication Notice

August 18, 2006
Tittle/DOL Settlement Allocation:

Please note this communication packet was sent to eligible class action allocation recipients.
For further inquiries please contact the toll-free number for the Hewitt Service Center 1-866-745-4522.
The Hewitt center may also be contacted at (281-882-7503) locally or by international participants who are unable to use the toll free number.

Plan of Allocation/Distribution Details:
For an explanation of how the plan of allocation works.
For Information Relating to the Status of Enron Corp. Common and Preferred Stock,

For detailed information regarding the Partial Settlements, please refer to the relevant documents below:

July 24, 2006 - Keller Rohrback announces Final Approval of the $37.5 million dollar Enron Partial Settlement to pay claims to all persons who were participants or beneficiaries in the Plans during the period from January 1, 1995 through December 2, 2001 (“Class Period”). The Partial Settlement resolves claims against The Northern Trust Company.

June 7, 2006 - The United States District Court in Houston has certified two classes in the litigation for trial on behalf of all persons who participated in the ESOP and Savings Plan during January 20, 1998 through December 2, 2001, appointed sixteen persons as the Class Representatives, and confirmed that Co-Lead Counsel and others are the attorneys for the classes.

To review the Court's Opinion and Order Certifying Tittle Classes, click here.

FEES

On July 24, 2006, the Court approved the award of Attorneys’ Fees and Reimbursement of Expenses and an Incentive Award to the Class Representatives.

June 9, 2006 - Class Counsel filed their papers in support of their petition for an award of attorneys fees, reimbursement of expenses, and an incentive award for the Class Representatives. As previously provided in the notice concerning the partial settlement with Northern Trust, they have asked for 20% of the total amounts recovered in all partial settlements in the litigation, including interest, for the 56,500 hours they have worked on the case, seek reimbursement of expenses in the amount of $874,902.74, and have asked the Court to award each of the Class Representatives an additional $7,000.00 for services to the classes in this case.

Class Counsels' Petition

Joint-Declaration of Co-Lead Counsel supporting Class Counsels’ petition

April 2006 -- Keller Rohrback announces Preliminary Approval of the $37.5 million dollar Enron Partial Settlement (plus interest, less attorneys’ fees and costs) to pay claims to all persons who were participants or beneficiaries in the Plans during the period from January 1, 1995 through December 2, 2001 (“Class Period”). The Partial Settlement resolves claims against The Northern Trust Company (“Northern Trust”), which allegedly breached its fiduciary duties by violating the Employee Retirement Income Security Act of 1974, 29 U.S.C. §§ 1001 et seq, (“ERISA”).

Order granting Preliminary Approval of Partial Settlement (4/26/06)

Partial Settlement Notice (Mailed to Class Members 5/3/2006)
Partial Settlement Publication Notice (Published 4/26/2006)

For inquiries on the settlement or to update your address, please e-mail:

Enronsettlement@gardencitygroup.com
 

December 2005 -- Keller Rohrback announces FINAL APPROVAL of the $1.25 million Partial Settlement (less attorneys’ fees and costs) to pay claims to all persons who were participants or beneficiaries in the Plans during the period from January 1, 1995 through the Effective Date of the Settlement (“Class Period”). The Partial Settlement resolves claims against Arthur Andersen LLP and David B. Duncan (“Andersen”), who allegedly breached their fiduciary duties by violating the Employee Retirement Income Security Act of 1974, 29 U.S.C. §§ 1001 et seq, and for negligence.

November 2005 -- Keller Rohrback announces Preliminary Approval of the $1.25 million Partial Settlement (less attorneys’ fees and costs) to pay claims to all persons who were participants or beneficiaries in the Plans during the period from January 1, 1995 through the Effective Date of the Settlement (“Class Period”). The Partial Settlement resolves claims against Arthur Andersen LLP and David B. Duncan (“Andersen”), who allegedly breached their fiduciary duties by violating the Employee Retirement Income Security Act of 1974, 29 U.S.C. §§ 1001 et seq, and for negligence.

Order granting Final Approval of Partial Settlement (12/20/05)

Order granting Preliminary Approval of Partial Settlement (9/12/2005)

Partial Settlement Notice (Mailed to Class Members 10/31/2005)
Partial Settlement Publication Notice (Published 10/31/2005)

September 13, 2005 -- Keller Rohrback Announces Final Approval of the $356.25 million dollar Partial Settlement in the Enron class action lawsuit.

Keller Rohrback Announces Preliminary Approval of $356.25 million dollar Partial Settlement in the Enron class action lawsuit.

July 28, 2005 - A new Partial Settlement for $356.25 million dollars has been preliminarily approved in a class action lawsuit brought by Plaintiffs on behalf of the Enron Corp. Savings Plan (401K), the Enron Corp. Employee Stock Ownership Plan (ESOP) and/or the Enron Cash Balance Plan (the “Plans”) against Enron for breaches of fiduciary duty under the Employee Retirement Income Security Act of 1974 (“ERISA”). The settlement includes participants or beneficiaries of the Enron Plans from January 28, 1998 up through and including December 2, 2001, otherwise regarded as the Class Period.

The Partial Settlement will allow a claim in Enron’s bankruptcy proceedings in the amount of $356.25 million (less attorneys fees and expenses) to the Settlement Class. Because there is uncertainty with respect to the amount to be ultimately distributed with respect to allowed unsecured claims and when the distributions will occur, named plaintiffs have obtained a commitment (subject to approvals by the Department of Labor and the Independent Fiduciary) to purchase the allowed claim for 27.35% of its face amount ($97,434,375) in cash, which at the time of the Fairness Hearing they will ask the Court to authorize the transfer of the allowed claim.

If you are part of the ERISA class, you do not need to do anything further. A notice will be mailed to all Class members on August 5th, 2005. A notice shall also be published in the Wall Street Journal (national), the Oregonian, Houston Chronicle, and the Omaha World Herald on Friday, August 5th, 2005.

Order Approving Final Settlement (9/12/2005)
Tittle Class Action Settlement Agreement (7/6/2005)
Order granting Preliminary Approval of Partial Settlement (7/27/2005)
Partial Settlement Notice (Mailed to Class Members 8/5/2005)
Partial Settlement Publication Notice (Published 8/5/2005)

Amended Supplemental Plan of Allocation (9/12/2005)

May 24, 2005 - the United States District Court in Houston has now granted final approval for the $85 million partial settlement on behalf of all participants in Enron's ESOP, Savings Plan, and Cash Balance Plan during the period January 1, 1995 through June 7, 2002. The Court approved the settlement despite the strenuous objections of certain defendants who are not covered by the settlement, including Kenneth Lay, Jeffrey Skilling, and the Northern Trust Company. The litigation will continue against those defendants.

The Court's Order approving the settlement is attached. Before any monies are distributed to the class, several additional procedures must occur. The first is the resolution of a proceeding that will determine whether the settling defendants are entitled to the full amount of the $85 million in insurance coverage that is being used to fund the settlement. In addition, any appeals by the non-settling defendants must be addressed before the settlement will become final. Resolving those matters could take many months.

Click here to view Order of Final Judgment and Dismissal and Opinion and Order.

The Plan of Allocation below includes the formula used to determine the amount that Class Members are entitled to receive, but does not indicate actual dollar amounts for the various individual members. As soon as the Settlement Administrator determines the individual amounts you will be notified.

Plaintiffs' Motion to Set Aside a Portion of Funds Recovered in Partial Settlement to Establish Attorneys' Fee and Litigation Expense Reserve Accounts (7/30/2004)
 - Exhibit A
 - Exhibit B
 - Exhibit C
 - Exhibit D
 - Exhibit E
 - Exhibit F
 - Exhibit G

Plan Of Allocation For $85 Million Partial Settlement (8/17/2004)
Order granting Preliminary Approval of Partial Settlement (5/31/2004)
Partial Settlement Notice (Mail to Class members on 6/9/2004)
Partial Settlement Publication Notice (Published on 6/9/2004)
Scheduling Order

PLEASE NOTE THE FOLLOWING IMPORTANT DATES:

Class Definition
The Partial Settlement will provide $85 million (less attorneys' fees and costs) to pay claims to all persons who were participants or beneficiaries in the Plans during the period from January 1, 1995 through June 7, 2002 ("Class Period").

Settlement Approval Schedule
Deadline for Hearing Objections to Partial Settlement 7/9/2004
Hearing on Final Approval Motion 8/19/2004

ENRON SETTLEMENT IN THE NEWS

8/3/04 Latest:  Despite Enron's opposition, arguing releasing the funds would deplete its insurance reserves, U.S. Bankruptcy Judge Arthur Gonzalez in New York authorized Enron's insurance companies to release $85 million to partially settle more than $3 billion in pension fund claims stemming from the 2001 collapse.

7/28/04

"Enron Tries to Block $85 Million Insurance Payout"

By Ellen E. Schultz
Staff Reporter of
The Wall Street Journal
Page C5

6/9/04

The Notice Administrator shall publish the Publication Notice in the Houston Chronicle, The Wall Street Journal, The Oregonian, The Omaha World-Herald and Class Counsels' web sites.

5/13/04

The Wall Street Journal is reporting: " Enron Employees to Settle Retirement Suit for $85 Million." According to the article:

Approximately 20,000 current and former Enron Corp. employees who lost money in their retirement plans when the company collapsed in late 2001 will participate in an $85 million settlement of a class-action lawsuit.

The tentative settlement, filed yesterday, would be the largest to date for a case involving company stock in retirement plans, said Lynn Sarko, the attorney representing the employees. Earlier this year, employees of Global Crossing Ltd. settled for $79 million, and employees of Lucent Technologies Inc. settled for $69 million.

 

The article further notes that the "partial settlement resolves claims against Enron's human-resource staff and company directors, but doesn't settle claims against top Enron executives." The settlement does not resolve claims against Northern Trust Corp. or Arthur Andersen.

 

"The Collapse of Enron: A Bibliography of Online Legal, Government and Legislative Resources" (Copyright © 1996-2004)

For further questions, please call toll free 1-866-560-4043.
Please DO NOT contact ENRON or the COURT.
They cannot answer your questions.

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