Former PGE Investors Sue Over Enron Loss

PORTLAND, Ore. -- Former Portland General Electric shareholders have sued the man who sold the Oregon utility to Enron, claiming he misled them by advising them to approve the merger, The Associated Press reported Friday.

PGE shareholders received $1.8 billion worth of Enron stock when the utility was acquired in 1997 but the stock became "virtually worthless" after the Texas energy giant declared bankruptcy in December 2001, according to the lawsuit.

Former PGE chief executive Ken Harrison earned about $75 million from his sale of Enron stock. Harrison, who recently purchased a winery near Walla Walla, Wash., could not be reached Friday. Rick Martson, a Portland attorney who represents him, declined comment.

In addition to Harrison, the class action suit names Joseph Hirko, the former chief financial officer for PGE; accounting firm Arthur Andersen, which worked for both PGE and Enron; Jack Wilborn, then managing partner of Andersen's Portland office; and Goldman Sachs, the New York-based investment banking firm that structured the merger.

-- NYSSCPA.org News Staff

Posted on 06/23/03