Are you a legal professional? Visit our professional site

Supreme Court Refuses Enron Shareholder Case

Article Placeholder Image
By Admin on January 22, 2008 10:46 AM

The U.S. Supreme Court has refused to consider an appeal by former Enron investors who were seeking to recover more than $30 million from a number of Wall Street investment banks. The shareholders alleged that the banks -- including Credit Suisse First Boston and Merril Lynch -- conspired with the now-defunct energy company to hide its liabilities and inflate its value. According to the Associated Press, by refusing to review the investors' lawsuit, the court took away what may have been their only hope of keeping the case alive." Today's Supreme Court action follows a Court opinion issued last week, which limited the ability of stockholders to sue third-party businesses -- including banks -- that may have played a role in facilitating a company's securities fraud. Enron, the seventh largest corporation in the U.S., filed for bankruptcy in 2001 amid rumors of questionable accounting practices.