Enron Employee Committee Wins Suit to Recover $20 Million in Bonuses

Enron Employee Committee Wins Suit to Recover $20 Million in Bonuses Paid on Eve of Bankruptcy

12/12/2005 6:31:00 PM

To: National Desk, Legal Reporter

Contact: David P. McClain of McClain, Leppert & Maney, P.C., 713-654-8001 or mcclain@mcclainleppert.com

HOUSTON, Dec. 12 /U.S. Newswire/ -- In a 102-page Memorandum of Decision and Order dated Friday, December 9, 2005, the United States Bankruptcy court for the Southern District of Texas, Houston Division rendered a Final Judgment in favor of the Official Employment-Related Issues Committee of Enron Corp. (the "Employee Committee") against former Enron executives to recover approximately $20 million in preferential and fraudulently conveyed bonus payments made to Enron executives in the months immediately preceding Enron's bankruptcy filing.

Special Litigation Counsel for the Employee Committee, McClain Leppert & Maney, P.C. served as counsel in the lawsuits. Mark Maney, lead trial counsel, said, "This is a complete vindication of the Employee Committee's claims that there was actual fraud in Enron's attempts to reward favored employees and executives on the eve of bankruptcy."

Richard Rathvon, the former Enron employee who was instrumental in forming the Enron Employee Committee, stated, "This is a great day for the employees whose lives were shattered by the fraud at Enron. The value of the Committee and its work has been vindicated by the Court's ruling."

This judgment is in addition to the approximate sum of $50 million already recovered by the Employee Committee through negotiation and litigation. These funds are specifically earmarked for those 4,500 employees who were fired without severance at the time of the Enron's filing of its Chapter 11 case or immediately thereafter.

http://www.usnewswire.com/

http://releases.usnewswire.com/GetRelease.asp?id=58025

I hope appeals aren't allowed.

Edit to add: we were just talking about the coming trial of Ken Lay et.al., to supposedly start in January '06.

...I doubt that the appeals would help, even if they were allowed.

This might be one time when we actually see some justice.

:patriot:

who have homestead exempt mansions in florida and texas and exempt 'pension plans' and other devices they've put together over the last five years.

I'd love to see the Committee crow....WHEN they COLLECT, if they can

each person will get less than $15,000. I suspect much less after the lawyers get paid.

I'm not scoffing at $15,000, but I think they lost a lot more than that!!!!!