The United States Supreme Court today rejected an appeal by Enron shareholders who sought to sue investment banks that put together deals for the fallen energy giant.
This effectively ends a $40 billion class action lawsuit. Shareholders have already agreed to $7.2 billion in settlements.
The Court declined to hear the Enron case without comment. However, last week it ruled in an unrelated case with similar legal questions. In the Stoneridge case, the Court held 5-3 that shareholders could not sue third parties, such as banks or accountants in securities fraud cases, unless investors relied on them when making investment decisions.
The case is the Regents of the University of California v. Merrill Lynch Pierce Fenner & Smith Inc., 06-1341.
Sources: http://www.chron.com/disp/story.mpl/front/5474607.html
http://money.cnn.com/news/newsfeeds/articles/djf500/200801221340DOWJONESDJONLINE000750_FORTUNE5.htm
