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Citigroup to pay $2 billion in Enron settlement

[JURIST] Financial giant Citigroup [corporate website] said Friday that it will pay $2 billion [press release] to settle a class-action lawsuit over its role in helping to engineer a massive accounting fraud at Enron [JURIST news archive]. The settlement will distribute payments to Enron investors who bought stock in the company during the period when Enron sought bankruptcy protection between 1997 and 2001. Under the terms of the agreement Citigroup denied any legal violations and settled "solely to eliminate the uncertainties, burden and expense of further protracted litigation." The settlement is slightly smaller that the $2.58 billion Citigroup paid to WorldCom [JURIST report] investors in 2004. Reuters has more.

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Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

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