Citigroup to pay $2 billion to settle Enron class action claims

New York, June 10 - Citigroup said it will pay $2 billion to settle Enron Corp. class action litigation.

The case, Newby et al. v. Enron Corp. et al., is pending in the U.S. District Court for the Southern District of Texas, Houston Division.

Under the settlement, the New York-based financial services company will pay the $2 billion to the class, which is all buyers of publicly traded equity and debt securities issued by Enron and Enron-related entities between Sept. 9, 1997 and Dec. 2, 2001.

The settlement must be approved by the Board of Regents of the University of California, the lead plaintiff in the case, Citigroup's board and the district court.

The settlement amount includes plaintiffs' attorneys' fees, which will be determined by the court at a future date.

Under the agreement, Citigroup denies committing any violation of law and said it has agreed to the settlement solely to eliminate the uncertainties, burden and expense of further protracted litigation.

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