A bankruptcy court has approved Citigroup’s $1.66 billion settlement with creditors of Enron, the bankrupt energy trader. The court approval was expected after Citigroup agreed to settle the case at the end of March. Citigroup was the last remaining defendant in what was known as the “Mega Claims” lawsuit. This was a bankruptcy suit filed in 2003 against 11 banks and brokerages. The Enron Creditors Recovery Corp. alleged in the suit that, with the help of banks like Citigroup, Enron kept creditors in the dark about the company’s financial troubles by using shady and highly questionable accounting. The damage done by Enron’s leadership team hurt a tremendous number of people in this country. Even with all the hurt and damage caused by a band of greedy men at Enron, there was still some good that came out of the Enron debacle. The exposure of Enron caused the government and others to look into what others in Corporate America were doing. When they did, a great deal of fraud and corruption was found. It also forced Congress to take action designed to avoid more Enrons in the future.
Source: Associated Press
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