Employees File Class-Action Against Enron
January 30, 2002
Former and current Enron employees who were allegedly betrayed by company management over the last several months are fighting back. On Monday, 400 employees filed a class-action lawsuit against the one-time oil and gas giant and its former auditor, Arthur Anderson. The company's retirement plan trustee, Northern Trust Co., was also named as a defendant.
The complaint alleges executives encouraged employees to invest in Enron stock despite the company's financial burdens. In addition, the suit claims that company policy forbade employees from selling Enron stock which was housed in employee 401(k) plans. As a result, many employees' retirement funds were wiped out almost overnight. Analysts say Enron could face hundreds of similar lawsuits over the next several months.
-- Article Courtesy of InjuryBoard.com
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