Enron (ENE) Stock Fraud
Keywords: Enron | Lawyer | Stock | Fraud | Lawsuit | Class | Action | Lawsuit | Attorney
In conjunction with our partner lawyers, we are currently investigating claims for Enron shareholders who purchased shares of Enron and lost money on their investment as a result of the Company's recent announcements.
Our Experienced Stock Fraud Lawyers and Attorneys Have Years of Experience Representing Shareholders in Numerous Stock Fraud Cases.
Enron, which was forced to file for bankruptcy in 2001, constitutes one of the biggest securities fraud scandals in US history. Enron was an energy company based in Houston, Texas that dealt with the energy trade on an international and domestic basis. Enron was billions of dollars into the red, but attempted to hide this debt through partnerships with other companies, fraudulent accounting, and illegal loans. Although top level executives at Enron were likely aware of the debt and the illegal practices, the fraud was not revealed to the public until October 2001 when Enron announced that the company was actually worth $1.2 billion less than previously reported.
As the Enron scandal was revealed, Enron shares dropped from over $90.00 to just pennies. This was an unprecedented and disastrous event in the financial world. Enron's plunge occurred after it was revealed that much of its profits and revenue were the result of deals with special purpose entities (limited partnerships which it controlled). The result was that many of Enron's debts and the losses that it suffered were not reported in its financial statements.
The Enron loss prompted an SEC investigation which uncovered various stock fraud schemes designed to hide the company's losses from stockholders. The schemes involved deception and illegal practices committed by high-ranking Enron executives, investment banking partners, and the company’s accounting firm, Arthur Anderson. Many of the executives have been charged with wire fraud, money laundering, securities fraud, mail fraud, and conspiracy.
As a result of the massive fraud at Enron, shareholders lost tens of billions of dollars. Thousands of Enron employees and investors lost all their savings, children's college funds, and pensions when Enron collapsed. Because the Enron 401(k) plan was a defined contribution plan, there was no Pension Benefit Guaranty Corporation insurance and employees lost the money they invested in Enron stock.
If you or someone you know owned stock in Enron and suffered financial losses because of the fraud committed by Enron executives, auditors, and investment banking partners, you have valuable legal rights. Please contact one of the Enron stock fraud lawyers at our firm by filling out our online form or calling 1-800-LAW INFO (1-800-529-4636).