Enron Case Tests SEC's Allegiances
June 1, 2007 06:40

When the Securities and Exchange Commission files a brief in legal disputes, it is usually a nonevent. But the cases usually don't involve Enron Corp. In recent weeks, the agency has been publicly and noisily pressured by a congressman, a union leader and a Democratic presidential candidate, amid increasing consternation the agency is favoring business interests in its decision making. As a result, the SEC's decision about whether to weigh in on a Supreme Court case as well as on a similar case seeking the high court's attention has become a test of its own motto: �investor protection.� The cases revolve around a similar question: Can shareholders sue third parties, such as investment banks, for another company's fraud? The SEC hasn't been asked by the Supreme Court to file a �friend of the court,� or amicus brief, but lobbying by high-po/wered plaintiffs lawyer Bill Lerach, who represents shareholders in the Enron case, has boxed the agency into a corner. Unless it sides with shareholders, the SEC could be criticized as an ally of business for wanting to restrict the number of ways investors can sue.

Kara Scannell, Wall Street Journal, ConsumerWatchdog.org 5/29/07
http://www.consumerwatchdog.org/corporate/nw/?postId=8004&pageTitle=
Enron+case+tests+SEC%27s+allegiances