Federal Judge Rules Enron Shareholders Will Share $7.2 Billion Settlement
Sep 10, 2008 (financialwire.net via COMTEX) --
Companies: Bank of America Corp. (BAC), Citigroup, Inc. (C), J.P. Morgan Chase & Co. (JPM)
September 10, 2008 (FinancialWire) -- U.S. District Judge Melinda Harmon has ruled that Enron Corp. shareholders will split more than $7.2 billion, which comes mostly from settlements made with financial institutions including Bank of America Corp. (NYSE: BAC), Citigroup Inc. (NYSE: C) and JPMorgan Chase & Co. (NYSE: JPM).
The money was recovered as part of a $40 billion lawsuit claiming financial institutions participated in the accounting fraud that led to the energy company's collapse.
Judge Harmon also approved $688 million in attorneys' fees, the largest ever in a securities fraud case. About 1.5 million individuals and entities will be eligible to share in the distribution under the settlement plan.
Shares of Citigroup Inc. fell $1.44, or 7.1 percent, to close at $18.88 Tuesday.
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Companies: Bank of America Corp. (BAC), Citigroup, Inc. (C), J.P. Morgan Chase & Co. (JPM)
Related terms: communications, federal, lawsuit, nyse, securities, standards
