Judge Throws Out Enron Civil Claims

HOUSTON -- A federal judge threw out civil claims of fraud and insider trading against eight former Enron Corp. directors but left intact the rest of a shareholders' lawsuit against board members, The Associated Press reported Friday.

U.S. District Judge Melinda Harmon ruled that the directors -- including Wendy Gramm, wife of former Sen. Phil Gramm, R-Texas -- may have been negligent but did not engage in securities fraud.

In her Wednesday ruling, Harmon approved requests from eight former directors to dismiss allegations they engaged in insider trading or securities fraud when approving financial proposals presented in board meetings.

"The outside directors are pleased that the district court, a neutral observer, dismissed all the allegations in the complaint that accused them of fraudulent conduct," Neil Eggleston, who represents the directors named in the lawsuit, said Thursday.

-- NYSSCPA.org News Staff

Posted on 03/14/03