- WASHINGTON (Reuters) -
Embattled
auditor Andersen is offering a total payment of $750 million dollars to
settle lawsuits stemming from its association with the fallen Enron Corp,
newspapers reported Thursday.
-
- The Washington Post and USA Today said that under the
settlement, $250 million would come from an insurance company co-owned
by Andersen and its global affiliates with the remaining $500 million to
be paid out in $100 million increments over the next five years.
-
- An Andersen spokesman had no immediate comment on the
reports.
-
- Andersen has come under fire for its auditing role at
Enron amid questions about the energy company's accounting for certain
partnerships that were off its balance sheets.
-
- USA Today said Andersen's New York law firm, Davis Polk
& Wardwell, outlined the proposal Wednesday in a meeting with the
Securities
and Exchange Commission.
-
- The newspapers, citing sources close to the talks, said
the settlement would cover all Enron-related legal actions threatening
the accounting firm, including a federal class-action lawsuit filed by
investors, a lawsuit on behalf of 401 (k) retirees and any SEC enforcement
action.
-
- The Washington Post cited a source close to the firm
as saying Andersen was also seeking to persuade the U.S. Justice Department
not to indict the firm.
-
- The paper cited a source close to the firm as saying
Andersen was anxious to get the Enron litigation settled, within two weeks,
before corporations send out annual ballots asking shareholders to ratify
their choice of independent auditors.
-
- Both newspapers said SEC and Andersen representatives
declined comment on the settlement efforts.
-
- Andersen has been saying that under the Enron cloud its
very survival was threatened because it could have difficulty holding on
to corporate clients and top talent.
-
- When Enron collapsed, Andersen's professional judgements
became the subject of federal, civil and criminal investigations.
-
- Copyright © 2002 Reuters Limited. All rights
reserved.
Republication or redistribution of Reuters content is expressly prohibited
without the prior written consent of Reuters. Reuters shall not be liable
for any errors or delays in the content, or for any actions taken in
reliance
thereon.
|
