Vinson & Elkins, Enron's former law firm, has agreed to pay the company $30m (₤16m) to settle claims of contributing to its collapse by signing off on questionable deals.

Under the settlement, which must still be approved by a federal bankruptcy court judge, Vinson & Elkins admits no liability and will waive claims against the Enron estate for $3.9m (₤2m) in service fees.

‘We are pleased with this settlement, and remain focused on continuing to resolve remaining claims with major financial institutions directly involved in Enron's collapse,’ Enron president and chairman John J. Ray III said, in a statement.

Vinson & Elkins earned up to $40m (₤21m) a year acting as Enron's major outside legal counsel, signed off on many of deals which allowed debt to be shifted off balance sheets, WebCPA reported.

Enron has also reached settlements totaling about $800m (₤430m) with six banks.