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[Hour by hour news & analysis... http://www.egroups.com/group/Communist-Internet ] [Subscribe: [EMAIL PROTECTED] ] . . Monday, 8 April, 2002, 21:49 GMT 22:49 UK Enron suit implicates 9 US banks University of California regents are the lead plaintiffs The University of California has filed an amended complaint in its lawsuit against Enron, alleging nearly a dozen investment banks and law firms colluded to defraud investors. The university filed the revised class-action lawsuit on Monday in US District Court in Houston on behalf of thousands of other stockholders, who lost at least $25bn (�17.4bn) by investing in failed energy-trader Enron. The wrongful conduct which underlies this case was not limited to Houston, but also took place on Wall Street William Lerach plaintiff attorney The revised lawsuit, 500 pages in length, accuses the firms not only of participating in deception but of profiting from it, too. "This fraud was worldwide in its scope, years long in its duration, unprecedented in its size," said William Lerach, the lead attorney representing the plaintiffs. Looking beyond Enron The scheme's sheer immensity meant it could not have been accomplished by Enron executives alone, "no matter how dishonest or energetic they may have been", Mr Lerach told reporters during a press conference on Monday in San Francisco. University of California officials said the educational system lost $145m attributable to the collapse of Enron's stock price. The original class-action lawsuit filed last October named 29 top Enron officials and its embattled auditor Arthur Andersen and has been frozen ever since Enron filed for bankruptcy last December. Among those named in that lawsuit were former chairman and chief executive Kenneth Lay and another former chief executive Jeffrey Skilling. 'Pyramid' scheme The amended shareholder suit was accompanied by a similar complaint filed by former Enron employees who lost their pension funds as a result of the bankrupt firms' now worthless stock. Defendants Arthur Andersen 29 Enron ex-officials Barclays Deutsche Bank JP Morgan Citigroup Merrill Lynch CSFB Lehman Brothers Bank of America Canadian Imperial Bank Vinson & Elkins Kirkland & Ellis Both complaints named the same nine Wall Street investment banks, accusing them of acting to defraud investors. In mounting their latest legal manoeuvre, the plaintiffs have implicated some of Wall Street's most prestigious investment banks with the hopes of recouping some of the billions of dollars they have lost. The named banks include Barclays, Deutsche Bank, Citigroup, Merrill Lynch, CSFB, Lehman Brothers, Bank of America, JP Morgan and Canadian Imperial Bank. "The wrongful conduct which underlies this case was not limited to Houston, but also took place on Wall Street, where Enron's investment banks and lawyers helped create, structure and sell securities which propped up the Enron pyramid," the employee complaint read. 'No alternative' Analysts on Monday said the plaintiffs face an uphill battle in getting a court to agree the banks and law firms are liable for shareholder losses. "They clearly have a large challenge before them," said Christopher Bebel, a Houston lawyer. "However, they have no alternative. They have to pursue this course of action to have a chance of locating sufficient funds." Part of the reason for the inclusion of new defendants is that Andersen may prove unable to come anywhere near meeting the plaintiffs' demands for compensation. When the lawsuit was first prepared last autumn, it seemed feasible to extract hundreds of millions of dollars in compensation from Andersen - the world's fifth largest accounting firm - and former top Enron officials. But the scale of the class-action suit has ballooned to $25bn, and Arthur Andersen's further existence has been called into question, as company after company has fired or failed to renew contracts with the firm. Defending against charges Two of the newly named banks denied the latest charges. "We believe there is no basis for this claim, and we intend to vigorously defend against it," a spokesman for Merrill Lynch said. London-based Barclays Capital told Dow Jones news agency the bank "does not believe there is a basis for a successful claim to be brought against it". Citigroup and JP Morgan declined to comment, while Bank of America, CIBC, Deutsche Bank and Lehman were not reachable. For its part, CSFB has previously defended its role in advising Enron, saying its work "was reviewed by the ratings agencies, outside counsels, and the accounting firms". Also implicated in the partnerships are the law firms Vinson & Elkins and Kirkland & Ellis, who helped shepherd the deals through. Both firms have said they would challenge the charges The suit accuses Enron executives and advisors of a long list of offences, centring on the off-balance-sheet partnerships that were used to conceal the firm's finances from investors. Full story in depth Latest news Auditor charged Andersen merger fails Confronting the boss Probe hits Wall Street Ex-staff fight for cash Background Fallen media darling Scandal at a glance Crime and reform Rating agencies flack Profile: Energy giant Employees' tales UK fallout 'Cash-for-access' row Who met whom when Labour Andersen links Analysis: Labour worry CLICKABLE FACT FILES Enron: Who's who Timeline: The scandal explained TALKING POINT Your reaction to revelations AUDIO VIDEO TV and Radio reports See also: 08 Apr 02 | Business Andersen to lay off 7,000 08 Apr 02 | Business Enron victims prepare legal action 28 Jan 02 | Business Enron sued by staff Internet links: Andersen Milberg, Weiss UC Board of Regents Enron Enron fraud The BBC is not responsible for the content of external internet sites Top Business stories now: Judge slams Merrill investment advice Enron suit implicates 9 US banks Canada backs legal case against UK Markets shake off IBM profit warning Opec warns of oil crisis Kirch declares itself insolvent Terror victim's husband sues American Airlines Andersen to lay off 7,000 Links to more Business stories are at the foot of the page. --------------------------- ANTI-NATO INFORMATION LIST ==^================================================================ This email was sent to: [email protected] EASY UNSUBSCRIBE click here: http://topica.com/u/?a84x2u.a9617B Or send an email to: [EMAIL PROTECTED] T O P I C A -- Register now to manage your mail! http://www.topica.com/partner/tag02/register ==^================================================================
