February 13, 2002

Local Perspectives on National Story:

Enron Scandal Raises Questions for Local Investors

STORY IDEAS: The Enron collapse is raising new questions for investors questions about investing in their companies' 401(k) programs, the safety of their investments overall and whether someone may be to blame legally for their investments' poor performance during the last year. Local securities litigator Michael Stoker of Johns, Flaherty & Collins has tips for local investors to determine if they have a claim against a company in which they invested and what recourse may be available.

The Enron situation is also raising questions about white-collar crime, including whether ignorance is a defense, proving malfeasance, and whether or not the people responsible for losing so many others' retirement funds will spend their retirement in prison. Local defense attorney Joe Veenstra of Johns, Flaherty & Collins can offer a local perspective on what the law dictates in these circumstances.

BACKGROUND: Enron's bankruptcy, the largest in U.S. history, led to thousands of employees losing their life savings in 401(k) plans tied to the energy company's stock. Thousands of other investors also lost large sums from investing in the company that somehow managed to hide its debt and inflate its profits by $1 billion. The story now has Congress convening to explore issues such as corporate responsibility, 401(k) plan reform and accounting standards.

CONTACT: For securities litigation angle: Michael Stoker, Johns, Flaherty & Collins, 608-784-5678 or for white-collar crime angle: Joe Veenstra, Johns, Flaherty & Collins, 608-784-5678.