HOUSTON, Tenn., Dec. 4 (UPI) -- U.S. human resources consultant Hewitt Associates LLC made a $22 million math error, shortchanging ex-Enron Corp. employees and retirees, a lawsuit alleges.
And the Lincolnshire, Ill., company refuses to correct the mistake or make up the shortfall as it promised, the federal lawsuit filed in Houston says.
Enron's retirement plans, which reportedly lost more than $2 billion when the former Houston energy giant collapsed in 2001, hired Hewitt to allocate an $89 million settlement, The Chicago Tribune reported.
The money was to be given to the plans' approximately 20,000 members.
But because of a flaw in Hewitt's computer system, the company miscalculated distributions, the suit says.
The average shortfall was $1,700. About 7,700 people got an average $2,800 more than they should have.
The error insults the thousands of people who have already suffered from Enron's collapse, said John Ray, chairman of Enron Creditors Recovery Corp., the new name of company after it emerged from bankruptcy.
"Hewitt made a grave mistake, and it needs to correct its mistake on behalf of these participants without further delay," Ray said. "They are an expert in the field and they need to show it."
A Hewitt representative declined to comment on the suit's allegations due to the pending litigation.
But spokeswoman Amy Wulfestieg told the newspaper, "We have and will continue to work cooperatively with Enron to ensure that this matter is resolved as soon as possible for the plan's participants and beneficiaries."
