The 5th Circuit ruled Monday that Enron shareholders cannot proceed with a $40 billion class-action lawsuit against investment banks for their alleged role in the accounting fraud that led to Enron's collapse. Reversing a district court decision, the three-judge panel said it was appropriate for the court to intervene "before settlement may be coerced by an erroneous class certification decision." A trial was set to begin next month, but plaintiffs attorney William Lerach said it now must be postponed.
5th Circuit Rules Out Class Action in Enron Shareholders' Suit
The Associated Press
March 20, 2007