Message #20858

[countrigal]

Some legalaties that I've learned through Business Law and Financing classes (with much communication with my instructors who are also working folks in the real world) is that those folks who put their 401K plans into investments strictly with the company will get something back through the legal system.  Insider trading would be the issue here, if in fact upper levels of the company were telling the lower folks to buy more of their (Enron's) stock.  Also, if they did in fact de-regulate the % of stocks that the employees were allowed to buy, you cross over into another set of federal laws that regulate that specifically.  A company cannot just arbitrarily sell stocks to employees -- there are rules that regulate how much stock any employee can purchase at various times.  So, those folks that did end up putting more of their money into Enron just before it capsized (or at least started sinking) will have some avenue available for them through the courts.  The problem?  Limited liabilities for partners and boards (different company set-ups have different liability laws) may affect who and how much gets reimbursed.

CountriGal
Deskdemon Editorial Board Member