The lawsuit brought by former employees against Kenneth Lay, Enron Corp.’s former chairman, and Northern Trust, the firm’s pension plan administrator, will be allowed to move ahead, a federal judge ruled on Wednesday, Reuters reports.

U.S. District Judge Melinda Harmon denied requests by the firms and Lay to be deleted from the suit. The lawsuit alleges that the company representatives shrugged their fiduciary responsibilities by requiring or encouraging employees to keep Enron’s doomed stock in their pension accounts.

However, Harmon also dismissed racketeering claims brought against JP Morgan Chase, Credit Suisse First Boston, Merrill Lynch and Citigroup , as well as Enron former outside law firm Vinson & Elkins.

Defunct auditor of Enron, Arthur Andersen, was dismissed from the racketeering charge, but is still open to being sued, Harmon noted.


The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

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