Enron Creditors' Deal With Lay Widow Gets OK

Law360, New York (July 20, 2011, 4:07 PM EDT) -- A New York bankruptcy judge on Wednesday approved the settlement of a long-running legal fight between the widow of former Enron Corp. Chairman Kenneth Lay and Enron creditors, overruling an objection from John Hancock Life Insurance Co.

U.S. Bankruptcy Judge Arthur J. Gonzalez's approval of the deal ends more than eight years of litigation between Linda Lay and the Enron creditors, who accused her of fraud in connection with $10 million Enron paid to buy annuities issued to her and her husband.

Under the settlement Linda...
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