Enron insider-trading lawsuit to widen
Insider trading allegations against top Enron officers will be greatly expanded in a lawsuit amendment scheduled to be unveiled on Monday, lawyers close to the case said today.
The lawsuit will allege, for instance, that former Enron Chairman Kenneth Lay sold large amounts of Enron shares after learning in August of accounting problems that eventually destroyed the former energy trading giant, they said.
A spokeswoman for Mr Lay, who resigned as Enron chairman and chief executive in January, said, "Mr Lay firmly denies any allegations of insider trading."
Houston-based Enron collapsed last fall and filed the largest bankruptcy in US history on December 2nd, wiping out thousands of jobs and billions of dollars in investor equity.