Document: U.S. Labor Department Sues Enron, Executives and Plan Officials for Failing to Protect Workers (lawsuit, fachsheets, and chronology): ERIC

ERIC memorandum template

	Judiciary

U.S. Labor Department Sues Enron, Executives and Plan Officials for Failing to Protect Workers (lawsuit, fachsheets, and chronology)

The Department of Labor announced on June 26 that they have filed a lawsuit against Enron Corporation, former chief executive officers Kenneth L. Lay and Jeffrey K. Skilling, the former board of directors, and the former administrative committee for Enron's retirement plans for failing to “prudently protect Enron workers' retirement assets invested in the stock of Enron.” The Department said that more than 20,000 participants in the savings and employee stock ownership plans experienced a substantial erosion of their retirement assets due to the drop in the value of Enron stock owned by the plans.

The Department filed suit in federal district court in Houston, Texas to recover losses that Enron employees suffered due to the mismanagement of two of Enron's pension plans. The Department's lawsuit alleges that the defendants violated the ERISA when they failed to consider the prudence of Enron stock as an appropriate investment for the retirement plans and did nothing to protect the workers and retirees from extensive losses.

The suit seeks a court order requiring the defendants to restore to the plans all losses with interest, forfeit their right to benefits from the plans and permanently bar them from serving as fiduciaries to any plan governed by ERISA.

Text Files:

Chronology of Enron-Related DOL Activity

Enron Brief

Back to Previous Page