A US court has dismissed claims against Britain's Barclays in a multi-billion dollar legal action filed by Enron shareholders against banks that worked with the fallen energy giant.
Britain's third largest bank, which worked with Enron largely in an investment banking capacity, said today it had received the order from a US district court dismissing the claims in a civil suit against the group and its investment banking arm, Barclays Capital.
Enron shareholders had filed a class action suit against Enron itself, its banks and several former top executives, claiming they had lost $40 billion when the firm collapsed.
According to the 67-page order published yesterday, Enron shareholders had accused Barclays of helping "to create the appearance Enron was a creditworthy and financially successful company when nothing was further from the truth."
"The allegations at most portray Barclays as a culpable aider and abettor," Judge Melinda Harmon said in the order, adding that was not a basis for private civil liability.
Barclays declined to comment today.
Several banks - including JP Morgan Chase, Lehman Brothers and Citigroup - have already reached billion dollar settlements over the suit, which is scheduled to start later this year.