The Wall Street Journal (subscription required) has an article on Enron’s push for a global litigation settlement. Enron has sought bankruptcy court approval to hire an attorney to pursue claims against its bankers, many of whom are co-defendants in the Enron securities class action. Not surprisingly, lead counsel for the securities class action is concerned that Enron is attempting to divert money away from injured investors. There is a joint status conference on the bankruptcy and securities class action cases today.
Quote of note: “Lawyers who are involved in the bankruptcy case view Mr. Cooper’s [Enron’s CEO] intiative as an effort to take control of the settlement process, and to attempt to stake a claim to a portion of any settlement money that Enron shareholders can wring out of the banks. Hiring a Texas litigator to represent Enron, these people say, coud help on that front.”