Wednesday, June 15, 2005
As expected (see earlier post here), J.P. Morgan Chase & Co. entered into a settlement in the Enron securities fraud class action by agreeing to pay $2.2 billion, which tops the $2 billion paid by Citigroup last week. Together with its settlement in the WorldCom class action earlier this year, J.P. Morgan has now paid $4.2 billion to extricate itself from the private securities fraud suits this year. [Update: Thanks to Bruce Carton for helping me keep my Morgans straight.]
Among the remaining defendants in the Enron suit with some pretty deep pockets are Merrill Lynch, Credit Suisse First Boston, Barclays, and Royal Bank of Scotland. Individual defendants in the securities fraud action include former Enron CEOs Ken Lay and Jeff Skilling, who are scheduled to go on trial in January 2006 in the criminal prosecution, so they certainly have much more important business to deal with at this time. An AP story (here) discusses the J.P. Morgan settlement.