The Department of Labor has issued a press release regarding the settlement reached earlier this week and discussed in a previous post–“Secretary of Labor Elaine L. Chao Announces Settlements Restoring at Least $66.5 Million to Enron Retirement Plans“:
U.S. Secretary of Labor Elaine L. Chao today announced the filing of settlements to restore at least $66.5 million to the Enron 401(k) and employee stock ownership plans. The proposed settlements, which must be approved by the court, cover agreements in both the Department’s litigation and the private class action lawsuit brought on behalf of the plans’ participants. Neither settlement applies to Enron Corporation and its former executives and inside directors, Kenneth L. Lay and Jeffrey K. Skilling . . .The Labor Department’s agreement covers the former outside directors of Enron’s Board. The private settlement also covers the plans’ administrative committee and others. In addition to monetary recoveries, the outside directors are barred from knowingly assuming fiduciary responsibility with respect to ERISA-covered plans for five years unless agreed to by the department. Absent settlement, the department will continue its litigation against the plans’ administrative committee and will seek additional monetary recoveries and injunctive relief.