U.S. to Sue Enron on Retirement Plan Losses

NEW YORK -- The U.S. Department of Labor is expected to file a suit against Enron Corp. and 20 company officers on Thursday on charges they were responsible for the loss of hundreds of millions of dollars from employees' retirement savings, The Wall Street Journal reported.

Citing an unidentified government official familiar with the suit and two members of the U.S. Congress, The Journal reported that the department might aim to recover money lost in the retirement accounts through the Employee Retirement Income Security Act.

The department has been looking into whether the trustees of the Enron 401(k) retirement plan misled employees into buying overpriced Enron stock in their accounts, The Journal reported.

The government official told The Journal that Enron's bankruptcy filing would not preclude the recovery of funds.

-- NYSSCPA.org News Staff

Posted on 06/26/03