Judge: Enron Creditors Can Sue Law Firms

HOUSTON -- A bankruptcy judge ruled that Enron Corp.'s creditors can sue two law firms, an accounting firm and several dozen former executives over the fallen energy giant's collapse, The Associated Press reported.

The ruling Monday by federal Bankruptcy Judge Arthur Gonzalez in New York allows the creditors to add those defendants to a fraud and negligence lawsuit filed in Montgomery County, Texas, last year.

The creditors say they want to add law firms Vinson & Elkins and Andrews Kurth to the lawsuit, as well as accounting firm Arthur Andersen and about 30 more former executives, including Enron's former general counsel, James Derrick.

The lawsuit already targets nine former Enron executives including former chairman Ken Lay, former chief executive Jeff Skilling and former chief financial officer Andrew Fastow.

-- NYSSCPA.org News Staff

Posted on 12/2/03