In re Enron Corp. Securities, Derivative & ERISA Litigation
United States District Court for the Southern District of Texas
284 F. Supp. 2d 511 (2003)
- Written by Jenny Perry, JD
Facts
In the wake of the Enron Corporation financial scandal, participants (plaintiffs) in Enron’s employee pension plans sued Enron and individual officers and directors of the company, plan administrators, Enron’s outside counsel, and five investment banks (collectively, Enron) (defendants) for breach of various fiduciary duties owed to the participants under the Employment Retirement Income Security Act of 1974 (ERISA). The participants alleged, among other things, that Enron induced them to direct the plans’ trustees to invest in Enron stock when Enron knew or should have known that the market price of that stock was artificially inflated due to Enron’s fraudulent financial practices. Enron moved to dismiss the participants’ amended complaint.
Rule of Law
Issue
Holding and Reasoning (Harmon, J.)
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