May 1, 2002
Litigation partner Michael Young speaks to The New York Times on the precarious position banks now find themselves in the aftermath of the Enron collapse. The May 3rd article, “Banks Balked As Andersen Tried to Get A Settlement,” reports on how large Wall Street banks are now finding themselves in the curious position of being both defendants and potential plaintiffs in the Andersen litigation, in which beleaguered investors, lenders and retirees are seeking billions of dollars for their losses.
Litigation partner Michael Young recently spoke to The New York Times on the precarious position banks now find themselves in the aftermath of the Enron collapse. The May 3rd article, “Banks Balked As Andersen Tried to Get A Settlement,” reports on how large Wall Street banks are now finding themselves in the curious position of being both defendants and potential plaintiffs in the Andersen litigation, in which beleaguered investors, lenders and retirees are seeking billions of dollars for their losses. Settlement negotiations came to an abrupt stay when banks were forced to choose either to waive the right to limit their exposure to Enron-related claims or accept a scant portion of Andersen’s $300 million settlement offer. Mr. Young told the Times that the banks have a right under federal law to derail the negotiation process. He explained that the banks were not offered enough in exchange for giving up the right to limit their liability and that “the risk-reward calculus is all out of proportion.” Mr. Young, who is frequently quoted in The New York Times, the Wall Street Journal, and numerous other national and international publications, is a recognized authority on accounting irregularities and financial fraud. A partner in Willkie’s Litigation Department, Mr. Young’s experience includes representation of issuers, officers, directors, accounting firms, investment banks, brokerage firms, and outside professionals in securities class actions with particular emphasis on accounting irregularities. He actively investigates and defends companies, officers and directors, accounting firms, and others in matters involving financial reporting and liability.