Enron law firm to pay $30m

Enron law firm to pay $30m

Claim paid to avoid further litigation

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.

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