JP Morgan Chase offers Enron investors $2.2bn
US bank offers $2.2bn to settle Enron class action lawsuit
JP Morgan Chase is set to follow Citigroup in agreeing to settle its share of the $30bn class action lawsuit brought by Enron shareholders.
The bank has ‘agreed in principle’ to offer $2.2bn (£1.2bn) to investors in the collapsed energy group, but is expected to neither admit nor deny any wrongdoing in the settlement.
Class action lawsuits were brought against JP Morgan Chase, Citigroup and 10 other Wall Street banks in the wake of Enron’s collapse in 2001 with huge undisclosed debts. They were accused of helping the company to hide losses and commit fraud.
JP Morgan Chase faced the same exposure to the Enron scandal as Citigroup but allegedly offered to pay out slightly more in order to hasten a settlement.
William Harrison, the firm’s chairman and chief executive said: ‘We are working hard to put the uncertainty of litigation risk behind us.’