The Baskin Law Firm and the Law Firm of Williams, Squires & Wren, L.L.P. Announce Class Action Suit On Behalf of Enron Employees

Business Wire, Nov 29, 2001

Business Editors & Legal Writers

HOUSTON--(BUSINESS WIRE)--Nov. 29, 2001

For Breach of Fiduciary Duty Which has Decimated

Employees' Retirement Savings

In a class action suit filed in federal court in Texas, current and former employees of Enron and its affiliates allege that Company officials breached their fiduciary duties in the administration of their 401(k) plans and their retirement savings have been decimated as a result.

The suit alleges that Enron, its directors and administrators of the Company's 401(k) plan, violated the Employee Retirement Income Security Act (ERISA) by loading employees' retirement accounts with Enron stock while ignoring Enron's chaotic financial situation. The results of defendants' mismanagement have been disastrous, forcing Enron to restate over three years of financial results to correct errors which had inflated Enron's income by at least $591 million. Meanwhile, Enron's stock, which made up over 54% of all the assets in the Company's 401(k) plan, has plunged a staggering 99% in less than one year.

The suit further alleges that defendants violated their duty to provide Enron employees with complete and accurate information about Enron's stock. Instead of warning employees of the risks associated with investing their retirement savings in Company stock, defendants kept Enron employees in the dark and encouraged them to invest their nest eggs in Enron's stock, while at the same time Enron's insiders disposed of over $1.2 billion of their own Enron stock at prices as high as $82 per share.

According to the suit, defendants took actions which made it impossible for its workers to protect their retirement savings, forcing them to watch helplessly as Enron stock plummeted. Although Enron made all of its matching contributions in Enron stock, it prohibited its employees from touching that stock until they reached age 50. The retirement savings of Enron employees and their families have been devastated by defendants' misconduct.

The plaintiff is represented by several law firms, including James Baskin of The Baskin Law Firm, located in Austin, Texas and Jim Wren of Williams, Squires & Wren LLP, of Waco, Texas. These lawyers have extensive expertise in prosecuting class actions, including breach of fiduciary duty and securities fraud. The class-action suit has been brought on behalf of all former and current participants and beneficiaries of Enron's 401(k) plan at any time since January 20, 1998. If you would like to participate in this action, wish to discuss this action or have any questions concerning your rights or interests, please contact plaintiff's counsel at 1-888-741-6200 or via the Web at http:\\www.trialfirm.com.