Enron to Pay Workers to Settle Lawsuits
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Enron Corp.’s current and former workers will get $133.9 million in cash as part of their retirement benefits under a settlement announced Thursday between the company and the U.S. Department of Labor.
The agreement resolves lawsuits against Enron and its board by former and current workers over the energy trader’s 2001 collapse. It also ends a class-action suit brought by Enron’s retirees, Secretary of Labor Elaine Chao said Thursday in a statement. The accord doesn’t resolve claims against ex-Chairman Kenneth L. Lay and former Chief Executive Jeffrey K. Skilling, she said.
“The collapse of Enron was devastating to thousands of employees and retirees whose long-term savings and retirement security were tied up in the company,” Chao said.
Enron filed the second-largest U.S. bankruptcy case in December 2001 after disclosing that it hid debt in off-the-books partnerships. The Houston-based company is raising money for creditors owed $51 billion.
Enron will pay about $9.3 million into its retirement plans. The remaining $124.6 million will come from Bear Stearns Investment Products Inc.
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