Bank of America makes $69 million deal with class action members over Enron securities

By Jeff Pines

Washington, July 2 - Bank of America will pay $69 million to settle a class action lawsuit with people who bought Enron Corp. securities from Oct. 19, 1998 to Nov. 27, 2001.

"The bank believes it is in the best interests of the company to resolve these claims and put this litigation behind it and focus efforts on creating greater value for shareholders. Under the settlement, Bank of America denied that it violated any law and explained that it settled the matter solely to eliminate the uncertainties, expense and distraction of further protracted litigation," it said in a news release.

The lawsuit Newby v. Enron Corp. is led by the University of California Regents. Plaintiffs' attorneys' fees will be paid from the settlement.

Bank of America was an underwriter for Enron.

The settlement is subject to approval by the U.S. District Court for the Southern District of Texas.

Enron, a Houston-based energy firm, filed for bankruptcy on Dec. 2, 2001. Its Chapter 11 case number is 01-16034.

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