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Federal judge approves $6.7B bank settlement in Enron case

[JURIST] US District Judge Melinda Harmon [official profile] has given preliminary approval to a $6.7 billion settlement in a class-action lawsuit [plaintiffs' website] brought by Enron [JURIST news archive] shareholders, an attorney involved in the case said Wednesday. Shareholders brought suit against several banks, accusing them of helping Enron hide the financial misdeeds that ultimately led to the company's downfall. The agreement, which still must receive final approval, covers settlements with Canadian Imperial Bank of Commerce [JURIST report; press release, PDF], JP Morgan Chase [JURIST report; press release, PDF] and Citigroup [JURIST report; press release, PDF].

William Lerach [attorney profile], the lead attorney representing Enron shareholders, said the settlement [attorney press releases] was the largest of its kind and more would follow. Lehman Brothers and Bank of America have already settled shareholder claims. Reuters has more.

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