Free Special Resources
Get Your FREE Special Report. Download Any One Of These FREE Special Resources, Instantly!
Featured Special Report
Claim Your Free Copy of Overtime Primer: Highlights from the New Regulations

The federal DOL overtime regulations go into effect this year. Are you ready?

Download Now!

This report includes a summary of key changes, including the salary level test and salary basis test.

As a bonus, we've included a handy flowchart to help you determine exemption status under the FLSA.

Download Now!
June 27, 2003
Labor Dept. Sues Enron, Execs to Recover Pension Losses
For a Limited Time receive a FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with customized information for your industry, location, and job. Get Your Report Now!
Labor Department filed a lawsuit yesterday against Enron Corporation, former chief executive officers Kenneth L. Lay and Jeffrey K. Skilling, the former board of directors, and the former administrative committee for Enron's retirement plans, alleging they failed to prudently protect Enron workers’ retirement assets invested in the stock of the company.

The lawsuit alleges that the defendants violated the Employee Retirement Income Security Act (ERISA) when they failed to consider the prudence of Enron stock as an appropriate investment for the retirement plans and did not protect the workers and retirees from extensive losses.

The suit seeks a court order requiring the defendants to restore to the plans all losses with interest, forfeit their right to benefits from the plans and permanently bar them from serving as fiduciaries to any plan governed by ERISA.

More than 20,000 participants in the savings and employee stock ownership plans experienced a substantial erosion of their retirement assets due to the drop in the value of Enron stock owned by the plans, according to Secretary of Labor Elaine L. Chao.

“Today, the Department of Labor is filing suit in federal district court in Houston, Texas to recover losses that Enron employees suffered due to the mismanagement of two of Enron’s pension plans. This action will strengthen the American workforce's confidence in their retirement savings,” says Secretary Elaine L. Chao.

The lawsuit also alleges Enron, Lay and others withheld information about Enron’s financial condition from other plan officials. The board of directors failed to properly appoint and monitor a trustee to oversee the Employee Stock Ownership Plan (ESOP), leaving the ESOP participants without this legally required fiduciary to protect them, according to the department.

Featured Special Report:
Top 100 FLSA Overtime Q&As
Twitter  Facebook  Linked In
Follow Us
Copyright © 2016 Business & Legal Resources. All rights reserved. 800-727-5257
This document was published on
Document URL: