Final Approval Given for Northern Trust Enron Settlement

The settlement brings the total amount to be collected by former Enron employees, who held company stock in their retirement accounts, to $264.3 million, the Houston Chronicle reports. About $23 million in legal fees and $874,902 in legal expenses will be subtracted from the $264.3 million.

Northern Trust served as administrator for Enron’s 401(k) and employee stock ownership plans. Participants in the plans sued Northern Trust over its involvement in the case, as millions of dollars from employees’ retirement savings were wiped out in Enron’s collapse. As part of the settlement, Northern Trust agreed to surrender any claim it might have against Enron arising from or relating to the Enron employee benefit plans (See NTC Settles Enron Company Stock Case ).

Participants were previously awarded $124.6 million from proceeds of the sale of the Enron Corp. bankruptcy claim to Bear Stearns Investment Products Inc. Separately, Enron paid $9.33 million to participants as a distribution for part of the bankruptcy claim. Federal officials previously announced an $86.85 million settlement with Enron officers and fiduciaries who served on the plans’ administrative committee (See DoL Unveils Latest Enron Repayment Deal ).