Class-Action Suit Against Enron Bankers is Dismissed

Mar 2007 // International Herald Tribune

After a long journey, a federal appeals panel ruled that a class-action lawsuit on behalf of shareholders against investment banks over their role as advisors to Enron cannot move forward, hitting a heavy blow to shareholders who lost billions after the company collapsed. While individual shareholders can still pursue claims, the decision stopped a mass effort to recoup $40 billion in losses.

“This is a devastating ruling for shareholders,” said Thomas Ajamie, a Houston securities lawyer. “It’s hard to believe that shareholders won’t recover money from an admitted fraud, but this U.S. Court of Appeals circuit has been more hostile to investors than other circuits have been.”

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