The Wall Street Journal-20080117-Payouts Set for Former Enron Shareholders
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Enron Corp. investors who sued the company more than six years ago are learning this week they'll receive an average of $6.79 per share for the common stock they owned. Those who owned preferred stock will get $168.50 a share, according to a court-approved notification that was mailed out.
The lawsuit, known as the Newby case after shareholder Mark Newby, covers those who invested in Enron stock from Sept. 9, 1997, until Dec. 2, 2001, when the company declared bankruptcy.
The class comprises about 1.5 million buyers of stocks and bonds. They could have purchased common shares as high as $90 when Enron was soaring in August 2000 or as low as $1 right before the bankruptcy.
This week's mailing, approved by U.S. District Judge Melinda Harmon of Houston, officially notified shareholders about the $7.2 billion settlement fund and a Feb. 29 hearing on how it will be disbursed.
The hearing also will cover attorneys' request for about $700 million in fees, which could be covered in part by interest on the $7.2 billion.
The bulk of the $7.2 billion fund came from settlements with Citigroup Inc., J.P. Morgan Chase & Co. and the Canadian Imperial Bank of Commerce. Smaller settlements came from Lehman Bros. Holdings Inc., Bank of America Corp., Enron's directors and accounting firm Arthur Andersen.
