Enron

[fidu]

What is the potential for successful personal liability claims against ENRON fiduciaries for breach of fiduciary duty under ERISA?

A. definitely liable under ERISA

B. definitely NOT liable under ERISA

C. will depend on facts not yet determined.

[Guest dmj1998]

C

I don't think anyone can answer A or B at this moment in time. We have all read the articles and seen the news stories, but the court of public opinion is not legally binding.

I'd be curious to hear more about the 401k plan decision to move forward with the announced blackout period while changing recordkeepers right after the really bad news came out. This has become a talking point for the plaintiff's lawyers, but, if they did not continue with the blackout, how many of these employees who had already watched their company stock drop from $80 to $30 would have gotten out before it dropped from $30 to $1 (or less now). My guess is not many.

I'd also like to get an explanation as to why the CEO was dumping hundreds of thousands of stock options in the late summer, right before the news started to come out.

Plansponsor.com has a reader opinion section about company stock in plans that has some interesting comments --> http://www.plansponsor.com/eprise/main/Pla...ysaysstockblock

I hope this thread starts getting some posts because I'd be curious to see what people think about this topic.

[Jon Chambers]

While I agree that the current answer should be "c", I also think that the facts that have come out so far look extremely bad for the Enron fiduciaries. However, plan lawsuits may be only part of their problems.

If you are interested in following progress of the suit, you may want to check out www.enronsuit.com.