WASHINGTON, Feb. 28 (UPI) -- Arthur Andersen is offering a total payment of $750 million to settle lawsuits stemming from its controversial relationship with bankrupt Enron Corp., newspapers reported Thursday.
The Washington Post and USA Today said that under the settlement, $250 million would come from an insurance company co-owned by Andersen and its global affiliates with the remaining $500 million to be paid out in $100 million increments over the next five years.
An Andersen spokesman was unavailable for comment.
The Chicago-based firm has come under fire for its accounting practices at Enron, including questions about Andersen's accounting for certain partnerships that were off the energy trader's balance sheets.
USA Today reported that Andersen's New York law firm, Davis Polk & Wardwell, outlined the proposal Wednesday in a meeting with the Securities and Exchange Commission.
The newspapers, citing sources close to the talks, said the settlement would cover all Enron-related legal actions threatening the accounting firm, including a federal class action lawsuit filed by investors, a lawsuit on behalf of 401(k) retirees and any SEC enforcement action.
The SEC expects to schedule another meeting with Andersen, plus all the legal parties involved in the Enron collapse, this week or next, USA Today said.
The Washington Post cited a source close to the firm as saying Andersen was also seeking to persuade the Justice Department not to indict the firm.
Both newspapers said SEC and Andersen representatives declined to comment on the settlement efforts.
