Canadien Imperial Bank of Commerce agreed to pay investors who were accusing the bank of defrauding shareholders in the largest class action suit filed against Enron so far. This brings the total so far to $7 billion.
A plaintiffs lawyer said that this will put pressure on the other seven defendants to settle. Of the 12 banks involved five have now settled. If the banks do not settle soon the settlement amounts could climb. CIBC will not admit anywrong doing. The University of California was the lead plaintiff in this case. Citibank and JPMorgan also settled for $2billion and $2.2billion respectively. These banks also did not admit anywrong doing. Other banks involved as defendants include: Barclays, Credit Suisse's Credit Suisse First Boston, Deutsche Bank, Merrill Lynch & Co., Toronto-Dominion Bank Royal Bank of Canada, and Royal Bank of Scotland.
Former CEO of Enron Ken Lay scheduled for trial in January of 2006.
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