Appeals court sends class-action case back to lower courts for reconsideration
Accountancy Age, 20 Mar 2007
A $40bn (£20.4bn) class-action suit filed by Enron investors against Merrill Lynch and Credit Suisse Group has been blocked by a New Orleans federal appeals panel.
The US Court of Appeals 53-page decision included a detailed criticism of US district Judge Melinda Harmon who granted class-action status to the case.
The panel said Harmon's decision was partly based on 'legal error' regarding the banks' liability.
The lawsuit has been sent back to the lower court for reconsideration.
Enron lawyer
William
Lerach said they were 'disappointed' with the outcome.
'We respect the court, but we think the decision is clearly wrong,' he said.
The investors are now set to seek a Supreme Court review of the Appeal Court's decision.
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