April 25, 2006

Energy firm\'s outside counsel sits in the cross hairs of Lerach, Securities class-action kingpin

Former Enron Corp. executives Kenneth Lay and Jeffrey Skilling are the ones being tried on criminal fraud charges in federal court in Houston, but the collapsed energy company\'s longtime outside legal counsel is also in the hot seat. Defending their management of Enron in the years before it spiraled into bankruptcy proceedings, Skilling and Lay both have pointed to advice they received from lawyers at Vinson & Elkins LLP, which worked for Enron for years. Their testimony plays into the hands of class-action lawyers suing the firm on behalf of shareholders whose stock in the company tanked in 2001. \"I would not want to be Vinson & Elkins, if Skilling and Lay are convicted,\" says Peter Henning, a securities-law professor at Wayne State University's Law School.

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