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The US Supreme Court yesterday rejected an appeal by Enron investors seeking to proceed with a US$40 billion ($52.5 billion) class-action lawsuit against investment banks that put together financing deals for the energy trader, which collapsed in 2001.
The rejection of the Enron appeal followed the Supreme Court's ruling in a similar case on January 15 that limited the ability of shareholders to sue third parties, such as financial institutions, in securities fraud cases.
The Supreme Court denied the appeal in a brief order, without any comment or recorded dissent.
Outside lawyers have said a Supreme Court rejection of the appeal would mean an end to the lawsuit.
"Fundamentally it means it's over," said Jay Brown, a securities professor at the University of Denver's Sturm College of Law.
In the Enron case, a US appeals court ruled for Merrill Lynch, Credit Suisse and Barclays and held the lawsuit could not go forward.
Citigroup, Lehman Brothers, Bank of America, JPMorgan Chase and CIBC have settled with Enron plaintiffs and paid a total of about US$7.3 billion.
- REUTERS
