Enron: the largest Securities Class Action
Enron: The largest Securities Class Action in history
The fall of Enron in 2001 caused the most important Class Action in history due to the amount of compensation awarded to investors, which amounted to 7,200 million dollars.
Until now, the second largest compensation agreed in the North American courts was the one agreed in the Worldcom case for an amount of 6,100 million dollars.
The shareholders entitled to obtain compensation were all those who had held positions between September 9, 1997 and December 2, 2001, the date on which the company declared bankruptcy.
The court's decision was made based on an agreement reached between the plaintiffs and the company, based on the accounting breaches in which the company had incurred, falsifying its accounting results.
The decision dragged his auditor, Arthur Andersen, at that time one of the world's big five in the audit sector.
The case was initially raised against the banking entities that had participated in the financing of doubtful operations, which would have led to the final bankruptcy of the company.
In what period could claim?
After an initial period in which claims were registered, the distribution of funds began in September 2008.
The deadline for filing claims closed on November 19, 2010.
Do you want more information?
The Funds that have maintained positions in the American market can obtain indemnities derived from other Securities Class Actions that still admit claims.
As of April 2017, there were 228 Securities Class Actions open for claims.
If you want more information, please contact us.