Andersen Settlement In Enron Suits Expected To Lift Accenture Liability

Accenture Andersen Worldwide

Late last week, Andersen Worldwide, the firm's global umbrella organization, said it would pay about $60 million to Enron's shareholders, employees and creditors to settle claims related to its role as auditor of the now-bankrupt energy firm, according to the company.

Accenture said Tuesday that as part of the proposed settlement with the plaintiffs in the Houston class-action lawsuits, Accenture will be released from "all claims that were brought, or might have been brought, by these plaintiff groups once the settlement is finally approved by the court." That process is expected to take several months, according to forms filed by Accenture with the Securities and Exchange Commission Tuesday.

Accenture also said it is making no contribution to the settlement, according to papers filed with the SEC.

Attempts to reach a global settlement that would include Andersen's U.S. division, Arthur Andersen LLP, however, were unsuccessful. Accenture legally split from Arthur Andersen two years ago, but Accenture has still been forced to work hard to stave off negative repercussions from the embattled Arthur Andersen's role in accounting scandals at Enron and WorldCom.

Earlier this year, Accenture CEO Joe Forehand said the company entered into an agreement with plaintiffs in two pending lawsuits involving Enron and Andersen. As part of the agreement, Accenture was not named in the class-action lawsuits filed by Enron shareholders, but the lead plaintiffs reserved the right to file complaints or add Accenture to the litigation at a later date.

Forehand said at that time that he believed there could be no liability because Accenture was "not involved in any way in Andersen's relationships with Enron that are alleged to have contributed to Enron's current difficulties."