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.
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5th Circuit Rules Out Class Action in Enron Shareholders' Suit
The Associated Press
March 20, 2007
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