U.S. Supreme Court’s Decision Not To Review Enron Case Sounds The Death Knell To Lawsuit

Enron investors’ lawsuit, attempting to recoup losses from investment banks that did business with the defunct energy company, suffered a major setback when the United States Supreme Court refused to review a lower court’s ruling which dismissed this theory of liability. Notably, a week earlier, in a different, but similar action involving investors of Charter Communications, the Supreme Court ruled investors in that case did not have a right to sue outside entities that did business with Charter Communications because those investors did not rely on the deceptive acts of those entities.