A Houston Federal Court was set to begin tiral on class actions filed on behalf of investors against several fiancial firms that allegedly assisted Enron to defraud shareholders. However, a Federal Court of Appeals, with most of its judges selected by the Bush-Cheney administration, stepped in to overturn the class action status of these Enron shareholders.
Several cases had been filed for Enron shareholders against Merrill Lynch, Credit Suisse, Royal Bank of Canada, Toronto-Dominion Bank, Barclays and the Royal Bank based upon the involovement of those fiancial institutions in actions by Enron management which misled investors about the finances at Enron and ultimately led to that firm’s demise.
Attorneys for the Enron victims say they will request the U. S. Supreme Court reverse this decision, but observers point out that the balance of power in the High Court has also been altered by Bush-Cheney appointees. Observers also remind the public that, prior to Enron’s demise, officials of that firm were involved in establishing energy policy for the Bush-Cheney administration. Notes of such discussions have never been produced to Congress.
However, today’s decision does not necessarily end claims against Merrill Lynch and the other financial firms for their involvement in Enron’s fiancial woes. These cases have kept the door open for Enron shareholders who act quickly to engage a law firm to file independent claims against the financial institutions based on the allegations asserted in the class actions.
Shepherd, Smith and Edwards, LLP (SSE) is a Houston based law firm which handles claims for investors nationwide against financial firms. Over the past two decades, SSE has represented thousands of investors and recovered millions of dollars from fianncial firms.