With Citi Settlement, Lights Dim On The Enron Era

March 2008 | Corporate Financing Analysis

The Enron era took another step toward closure last week as creditors to the former energy giant settled a lawsuit against Citigroupfor US$1.66bn, just weeks ahead of an April 28 court date. The mammoth settlement puts an end to five years of litigation on behalf of Enron creditors against Citi, which they accused of helping Enron in deceiving stakeholders as to the true state of its finances. It also marks the end of the so-called 'MegaClaims' lawsuit which has pitted shareholders, former employees and creditors against 11 Enron-related financial institutions beginning in 2003 that had already paid out US$1.8bn in settlements.

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