Arthur Andersen Settles Enron Suit for $16 Million
This article is for subscribers only.
Arthur Andersen LLP agreed to pay $16 million to Enron Corp. creditors to settle claims that the accounting firm was negligent in auditing and advising the energy trader, which collapsed in bankruptcy in 2001.
A hearing on whether a bankruptcy judge should approve the settlement is scheduled for May 14. The accord resolves a lawsuit filed in Houston accusing Arthur Andersen, now largely defunct, of approving transactions that manipulated Enron’s financial condition for the benefit of its executives.