Enron to be paid $37.5 million under Northern Trust class action settlement

By Caroline Salls

Pittsburgh, March 31 - Enron Corp. reached an agreement with Northern Trust Corp. under which Northern Trust principal subsidiary The Northern Trust Co. must pay $37.5 million for settlement of a class action lawsuit, according to a Northern Trust news release.

According to the release, Northern Trust's insurance carriers will pay the entire $37.5 million.

The lawsuit was filed in 2001 on behalf of participants in the Enron employment benefit plans that held Enron stock as an asset.

Northern Trust served in administrative capacities for Enron's 401(k) and employee stock ownership plans.

As part of the proposed settlement, Northern Trust has agreed to give up any claim against Enron in connection with the Enron employee benefit plans.

The settlement is subject to approval by U.S. District Court judge Melinda Harmon.

Because the proposed settlement is being funded entirely by insurance proceeds, Northern Trust said it will have no impact on its earnings.

Enron is a Houston-based energy company that emerged from bankruptcy on Nov. 18, 2004.

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