FleetBoston to Pay Enron About $20 Million
From the Associated Press
FleetBoston Financial Corp., Fleet National Bank and other affiliates have agreed to pay Enron Corp. nearly $20 million to settle their portions of a lawsuit filed against 10 banks accused of failing to prevent the former energy giant’s collapse, officials said.
FleetBoston, which was bought by Charlotte, N.C.-based Bank of America Corp. in 2004, will pay Enron $10.4 million to settle the lawsuit and $9.35 million to settle an avoidance action to recover preferential transfers in connection with Enron’s commercial paper litigation.
FleetBoston, which did not admit liability or wrongdoing, and Enron said in a statement that they settled the lawsuit to avoid the costs and uncertainties of more litigation.
