LA Times:
The Supreme Court today dismissed a huge lawsuit growing out of the Enron debacle that sought to hold Wall Street bankers liable for scheming with the executives of the defunct Houston energy trader.
The Supreme Court today dismissed a huge lawsuit growing out of the Enron debacle that sought to hold Wall Street bankers liable for scheming with the executives of the defunct Houston energy trader.
Lawyers for investment funds and pension plans, including the University of California’s pension plan, had sued Merrill Lynch and the other bankers, seeking to recover more than $30 billion that was lost when Enron folded in 2001. They argued that all the key players in the scheme that fooled stockholders should be forced to pay.
In dismissing the appeal of the Regents of the University of California vs. Merrill Lynch, the court appeared to doom the big lawsuits still pending against Enron’s bankers.
In dismissing the appeal of the Regents of the University of California vs. Merrill Lynch, the court appeared to doom the big lawsuits still pending against Enron’s bankers.
Today’s ruling is the most recent of a spate of decisions in which the courts have favored businesses. Last week, the Supreme Court rejected the notion of “scheme liability” in a closely watched stock fraud case involving a cable TV company and its vendors. In a 5-3 ruling, the court said suits for stock fraud are limited to the company that sells stock to the public, not bankers and other firms that had done deals with the company.
3 comments:
The Supreme Court will have egg on their faces when they find out Kenny Boy is alive and well living on an island. Yes his wife got the stolen money and the GOP friends got their share. People forget that Bush went to Chicago on his birthday just to make sure get got his Enron money from the bank that was holding the stolen money. I know people are going to say he's dead. But if anyone remembers we have had many criminals fake their death and Kenny Boy had help from the White House.
The Supreme Court just sold out the American people. This is way, way bigger than Enron. This sends a message to all companies that they go hog wild and siphon off profits and can screw their employees who were totally innocent out of their pensions.
I should have added that an evil company's partners are the closest to knowing what is really going on and they should be held accountable. The little people in California who actually worked for a living, the people whose pensions were wrapped up in investments, have no chance of knowing about a dirty company.
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