$11.2M Deal Covers Error in Enron Settlement Payout
Posted Mar 14, 2008 03:47 pm CDT
Enron employees who lost their retirement cash when the company collapsed were disappointed a second time when it was revealed that a company distributing a $218 million settlement payout got the first distribution wrong.
Additional payouts were left in limbo as lawyers argued who should be held responsible. Now the settlement distribution is back on track with an agreement by Enron’s successor company and the human resources firm that botched the payouts to restore $11.2 million to the settlement fund, the Houston Chronicle reports.
The Enron Creditors Recovery Corp. had contended human resources company Hewitt Associates was responsible for the full amount when a clerical error caused it to overpay 7,700 people and underpay 12,600 others during the first $89 million payout. The amount of overpayment that couldn’t be recovered amounted to $9.15 million, or $11.2 million with interest. But Hewitt contended Enron had hired it and should shoulder the responsibility for the errors.
The parties did not disclose how they would divide up the payment.