Bush Administration Sides with Defendants in Case Linked to Enron

By: Associated Press
By: Associated Press

WASHINGTON (AP) - In a U.S. Supreme Court battle, shareholders trying to sue scheming companies appear to have the support of the Securities and Exchange Commission.

But, they don't have the backing of the Bush administration. The White House its throwing its backing behind the companies.

At issue is whether shareholders can sue third parties, such as accountants, lawyers or investment banks, who plot with publicly held companies to deceive investors.

The Bush administration says ruling in favor of the shareholders would expose those companies to billions of dollars in liabilities. It says the SEC should be the sole prosecutor of companies accused of aiding and abetting corporate fraud.

If the court rules against investors in the suit, it could mean that other cases, like the suit brought by shareholders of Houston-based Enron, would have no chance of survival.


Join the Conversation!

To comment, the following rules must be followed:

  • No Obscenity, Profanity, Vulgarity, Racism or Violent Descriptions
  • No Negative Community Comparisons
  • No Fighting, Name-calling, Trolling or Personal Attacks
  • Multiple Accounts are Not Allowed
  • Stay on Story Topic

Comments may be monitored for inappropriate content, but the station is under no legal obligation to do so.
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.

Multiple violations may result in account suspension.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Questions may be sent to comments@kbtx.com. Please provide detailed information.

powered by Disqus
KBTX-TV Channel 3 4141 E. 29th Street Bryan, TX 77802 Phone: (979) 846-7777 Fax: (979) 846-1490 News Fax: (979) 846-1888
Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 9195207 - kbtx.com/a?a=9195207
Gray Television, Inc.