SEC backs investors suing Enron
Some 30 US states join class action suite against bankers involved with Enron
The US securities regulator will support investors who want to sue the
bankers that allegedly helped Enron
commit fraud.
In a lawsuit valued at US$40bn, shareholders will argue that banking groups
Merrill Lynch, Barclays and Credit Suisse Group were as responsible for the
accounting fraud as Enron.
The US solicitor general, representing government in the Supreme Court case,
has been asked by
the Securities
and Exchange Commission to file a supporting brief to the court, the
Washington Post reported.
Although a federal appeals court in New Orleans
decided in March that shareholders could not proceed with a class action suite,
about 30 other states have joined investors.
The case is set to begin in October.
Further reading:
Report:
SEC is supporting Enron shareholders in high court case
Canadian bank pays £45m to settle Enron case