Bank of America to Settle Enron Lawsuit for $69 Million

Bank of America Corp. agreed Friday to pay $69 million to settle a lawsuit by Enron Corp. investors over the bank’s role as underwriter for some debt offerings.

The bank, which said it broke no laws, is the first financial institution to resolve class-action claims brought by investors who say they lost billions of dollars in Enron’s collapse.

Unlike other banks sued by Enron investors, Bank of America wasn’t accused of fraud that contributed to the company’s meltdown in 2001.

The University of California’s Board of Regents, the lead shareholder in the suit, said Friday that the bank’s potential liability was limited to the securities it underwrote.

The accord might lead to other settlements in the case, defense lawyers said.

Citigroup Inc., J.P. Morgan Chase & Co. and other banks used by Enron were also sued, accused of helping the company hide debt in off-the-books partnerships. Enron filed for bankruptcy protection in 2001.

BofA was one of the biggest lenders to Enron as part of a $3-billion credit facility arranged by Chase and Citigroup. BofA lost $231 million from loans and securities write-downs related to Enron in 2001.

Shares of BofA rose 25 cents to $84.23 on the New York Stock Exchange.