The settlement is a step forward in Andersen Worldwide's efforts to wipe its slate clean of any outstanding legal entanglements as it disbands its web of member accounting firms, most of whom have defected en masse to rival firms in recent months.
Andersen's vast global accounting empire, which boasted 85,000 employees in 84 countries and more than $9 billion in revenue last year, lies in tatters after its U.S. arm was found guilty of obstructing justice in the Enron investigation.
The worldwide network will pay about $40 million to settle claims brought by the collapsed energy trader's investors and employees and an additional $20 million for Enron creditors, according to a person familiar with the matter.
The U.S. arm of the network, Arthur Andersen, wasn't part of the agreement, according to a person familiar with the matter. The unit still faces a bevy of lawsuits and ongoing probes and is set to officially shut doors on its shrunken auditing practice on Saturday.
A spokesman for Arthur Andersen declined to comment on the settlement. Aldo Cardoso, chief executive of Andersen Worldwide, refused to confirm if an agreement was imminent but said "a press release will be issued soon." An Andersen source close to the matter said an announcement on the $60 million deal had been planned for the end of the week but now may be brought forward.
Enron employees, creditors and investors have sued Andersen for billions, charging that the accounting firm colluded with the energy trader in the gut-wrenching scandal last year that left thousands out of a job and usurped the retirement savings of many.
Andersen, however, has maintained its innocence, though it admitted to some errors in its audit of Enron. Enron filed for bankruptcy in December after disclosures of billions in debt hidden away in complicated partnerships kept off its books.
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