[Flynn’s Editorial: I feel the government and its justice system does not allow sufficient protection of its American citizens from the likes of worldwide corruptions and internal frauds. I’ve highlighted snippets from the news article to drawn attention of injustice towards the shareholders.]
Supreme Court rejects appeal by Enron investors
Tue Jan 22, 2008 3:25pm EST
By James Vicini and Rachelle Younglai
Snippet from external source: (visit the link for the full article)
WASHINGTON (Reuters) – The Supreme Court on Tuesday rejected an appeal by Enron Corp investors seeking to proceed with a $40 billion class-action lawsuit against investment banks like Merrill Lynch & Co Inc that put together financing deals for the now defunct energy trader.
In that case, the top court ruled 5-3 that shareholders could not sue such third parties unless investors directly relied on the parties’ statements or representations when making investment decisions.
Enron, once a high-flying energy company, collapsed in a 2001 accounting scandal. Former Enron chief executive Jeffrey Skilling is serving a 24-year sentence for his conviction on conspiracy, fraud and insider trading.
Leave a Reply