Barclays rocked as judge puts it back in Enron spotlight
Judge rules that Barclays should be hauled back into the defendants arena, as Enron shareholders continue their bid to win a $40bn lawsuit
Barclays may find
itself back in the crosshairs of a $40bn (£20.3bn) class-action lawsuit after a
judge ruled that shareholders could petition for the bank’s reinstatement as a
defendant.
US District Judge Melinda Harmon declared that shareholders could file a new
complaint against Barclays six months after
dismissing Enron
shareholders’ initial bid to have the bank held accountable for their losses.
Barclays argued that the move had only been made on procedural grounds and
remained upbeat that their position would be vindicated.
‘Barclays remains confident the claims against it are without merit,’
The Times reported. Recently,
Barclays paid out $144m to settle another suit which claimed the bank played a
key part in helping Enron executives commit fraud. In reaching the compromise
Barclays refused to admit liability, stating that the agreement had been reached
to avoid the unpredictabilty and expense of a court battle.
Related links:
Enron accountant jailed for five and a half
years
Barclays settles Enron bankruptcy claim
Fastow to detail banks’ involvement in Enron