The Enron case seems to have brought issues concerning company stock in 401(k) plans to national mainstream attention. Ellen Schultz and Theo Francis writing for The Wall Street Journal
explore the philosophy behind company stock and how it will fare in a market downturn. To view the article, "Corporate Stock-Based Pay, 401(k) Plans", just follow this link
, but you will need to be a member of The Wall Street Journal
to gain access.
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Also, according to The Wall Street Journal
, Enron was working hard to save its deal with Dynegy by slashing the price of the all-stock transaction by over 40%. The paper notes that this move is unheard of in such transactions.
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Speaking of Enron, two new law firms are getting on on the act of suing the sponsor for breach of fiduciary duties. The 401kWire.com has already reported on suits brought by Hagens Berman (Enron is Now a Class Action
), a Seattle law firm, and The Gottesdiener Law Firm (Enron Redux
) of Washington DC. Now Keller, Rohback -- which is also one of the firms involved in the Lucent case -- and Dalton Gotto Samson & Kilgard, both of Seattle, have filed class action suits of their own on behalf of participants and allege a breach in fiduciary duties.
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And in some non-Enron news, the board of directors at Principal Financialhas authorized the repurchase of 15.3 million shares (or 4%) of the firm's outstanding common stock.
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