Enron arthur andersen - helpView Citing Opinions. CourtListener is a project of Free Law Project , a federally-recognized c 3 non-profit. We rely on donations for our financial security. Donate Now. Sign In Register. Filed: July 10th, Precedential Status: Precedential. Citations: F. Docket Number: enron arthur andersen.
Enron Corporation was an American energycommodities source, and services company based in HoustonTexas. At the end ofit was revealed that Enron's reported financial condition was sustained by an institutionalized, systemic, and creatively planned accounting fraudknown since as the Enron scandal. Enron has become synonymous of willful corporate fraud and corruption. The scandal also brought into question the accounting practices and activities of many corporations in the United States and was a factor in the enactment of the Sarbanes—Oxley Act of The scandal also affected the greater business world by causing the dissolution of the Arthur Enron arthur andersen accounting firm, which had been Enron's main auditor arthut years.
It ended its bankruptcy during Novemberpursuant to a court-approved plan of reorganization. One of Enron's primary predecessors was Enron arthur andersenwhich was formed inin Omaha, Nebraskajust a enroh months after Black Tuesday.
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The low cost of natural gas and the cheap supply of labor during the Great Depression helped to fuel the enron arthur andersen early beginnings, doubling in size by Over the next 50 years, Northern expanded even more as it acquired many energy companies. It was reorganized in as the main subsidiary of athur holding companyInterNortha diversified energy and energy-related products firm. Although most of the acquisitions conducted were successful, some ended poorly. InterNorth competed with Cooper Industries unsuccessfully over a hostile takeover of Crouse-Hinds Companyan electrical products manufacturer.
In Re Enron Corp. Securities, 535 F.3d 325 (5th Cir. 2008)
Cooper and InterNorth feuded in numerous suits during the course of the takeover that were eventually settled after the transaction was completed. By the s, Enron arthur andersen became a major force for natural gas production, transmission, and marketing as well as for natural gas liquids, and was an innovator in the plastics industry.
Under the leadership of CEO Robert Herring from tothe company took advantage of the unregulated Texas natural gas market and the commodity surge in the early s to became a dominant force in the energy industry. Toward the end of the s, HNG's luck began to run out with rising gas prices forcing clients to switch to oil. After Herring's death inM. Matthews briefly took over as CEO in a 3-year stint with initial success, but ultimately, a big dip in earnings led to his exit. InKenneth Lay succeeded Matthews and inherited the troubled conglomerate. With its conservative success, InterNorth became a target of corporate takeovers, the most prominent originating with Irwin Jacobs. The name was eventually enron arthur andersen over its apparent likening to an intestine and shortened to Enron. In addition, it ramped up its electric power and natural gas efforts. In andthe company added enron arthur andersen plants and cogeneration units enron arthur andersen its portfolio.
Enron adopted the idea and called it the "Gas Bank". The division's success prompted Skilling to join Enron as the head of the Gas Bank in Over the course check this out the s, Enron made a few changes http://rectoria.unal.edu.co/uploads/tx_felogin/the-breakdown-of-the-basic-nature-of/nacirema-body-rituals.php its business plan that greatly improved the perceived profitability of the company.
First, Enron invested heavily in overseas assets, specifically energy. Another major shift was the gradual transition of focus from a producer of energy to a company that acted more like an investment firm and sometimes a hedge fundmaking profits off the margins of the products it traded.
Skilling hired Andrew Fastow in to help. Starting in under the Energy Policy Act ofCongress allowed states to deregulate their electricity utilities, allowing them to be opened for competition. California was one such state andresen do so. Enron, seeing an opportunity with rising prices, was eager to jump into the market.
Although an Oregon utility, it had potential to begin serving the massive California market since PGE was enron arthur andersen regulated utility.
The new Enron division, Enron Energy, ramped up its efforts by offering discounts to potential customers in California starting in ]