According to a report in the New York Times today, four hedge funds specialising in distressed securities that lost over $120 million on Enron bonds are sueing Arthur Andersen (auditors to the company) and Banc of America Securities, Goldman Sachs and Salomon Smith Barney (the underwriters of the debt issues). The lawsuit was filed at the Federal District Court in Manhattan by Silvercreek Management, which runs the four funds out of Toronto. It is alleged that the auditors and underwriters ignored evidence of the impending collapse of Enron. The bonds were acquired in the third week of October. Enron filed for Chapter 11 on 2 December.
Hedge Funds Sue Enron Auditors and Underwriters
According to a report in the New York Times today, four hedge funds specialising in distressed securities that lost over $120 million on Enron bonds are sueing Arthur Andersen (auditors to the company) and Banc of America Securities, Goldman Sachs