Lawyers for Enron Corp. employees and investors were scheduled to meet in New York on Tuesday with representatives of Arthur Andersen LLP in an effort to reach a settlement with the weakened accounting giant.
David B. Duncan, a central figure in the federal investigation into Arthur Andersen LLP and Enron Corp., has agreed to plead guilty in Houston on Tuesday and become a cooperating witness in the government probe.
Federal prosecutors have told Arthur Andersen LLP that they intend to charge the firm with obstruction of justice for failing to prevent document shredding after company officials learned Enron Corp.'s accounting procedures were the subject of lawsuits and a federal inquiry.
Arthur Andersen is pushing hard to settle all claims over its Enron audits, offering a total payment of $750 million to cover civil lawsuits and seeking to persuade the U.S. Justice Department not to indict the firm.
Former Enron chairman Kenneth Lay on Sunday night abruptly canceled a much anticipated appearance Monday before a U.S. Senate panel in the wake of a scathing report on the management failures and self-dealing that led to his company's spectacular collapse.