The guilty plea of Enron’s former treasurer, Ben Glisan, will help the plaintiffs in the pending securities class action against the company. According to a Reuters article, Glisan “admitted that he and others ‘engaged in a conspiracy to manipulate artificially Enron’s financial statements’ in a secretive transaction called Talon, designed to hide debt.” Glisan is set to begin his 5-year sentence for wire and stock fraud conspiracy immediately.
Quote of note: “The admission can stand as evidence in a civil court that Glisan, and Enron, engaged in fraud, freeing plaintiffs from having to prove that allegation. ‘It may not make it a slam dunk, but it certainly is moving the ball right up to the hoop,’ said Neil Getnick, whose Manhattan law firm Getnick & Getnick specializes in business ethics and anti-fraud litigation.”
The 10b-5 Daily 