Arthur Andersen offers Enron settlement

Arthur Andersen has reportedly begun contacting attorneys for various Enron groups offering to settle a pending class-action …

Arthur Andersen has reportedly begun contacting attorneys for various Enron groups offering to settle a pending class-action lawsuit to prevent the accounting firm from being put out of business by the scandal caused by the failed energy company.

The Wall Street Journalreported today that Andersen, Enron's longtime accounting firm, is offering between $700 million and $800 million in an effort to negotiate a settlement with shareholders, creditors and employees of Enron.

The newspaper said Andersen's attempt to negotiate a settlement began more than a week ago, when the firm contacted lawyers for some large shareholders who had sued Andersen and Enron in federal court in Houston and expressed interest in negotiating a sweeping settlement to all claims.

"We remain confident we can work through this successfully," Andersen said in a statement released yesterday. "Reaching out to the groups affected in this case is consistent with our commitment to address the issue raised by Enron's collapse in a straightforward and constructive manner."

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AP