January 24, 2008
The Enron Creditors Recovery Corp. filed two motions in recent days before U.S. District Court Judge Melinda Harmon to ensure Hewitt Associates, a self-proclaimed leader in benefits outsourcing solutions, fully remedies the Enron Corp. Savings Plan (“Savings Plan”) members it injured through misallocations due to Hewitt’s self-acknowledged mistakes, including an internal software error. The motions also seek a speedy resolution of this issue in order to provide an efficient and timely resolution of the allocation process on behalf of fund claimants.
Thousands of claimants of the Savings Plan class action Tittle settlement were incorrectly distributed funds due to Hewitt’s admitted mistakes. Enron Creditors Recovery Corp. is seeking a court order to force Hewitt to fund any shortfall that remains after the second settlement allocation; and the extension of a previously approved Court procedure for the independent review of any disputed claimant calculations.
“After months of delay, and at a time when the Savings Plan is poised to send corrected allocations to participants, Hewitt has once again failed to live up to its commitment to fully fund the shortfall it created,” said Enron Creditors Recovery Corp. President and Chairman of the Board, John Ray III.
In July of 2007, attorneys for Hewitt Associates told Judge Harmon, “We’re all here this afternoon because of a mistake that my client [Hewitt] made. There’s no doubt about that.”
Hewitt’s counsel also assured the Court, “Hewitt is prepared to do the work to correct the mistake and the follow up work that goes with that.” Six months later, Hewitt Associates still refuses to live up to its obligation to make whole the claimants in the Savings Plan who were directly harmed by Hewitt’s mistake.
The Enron Corp. Savings Plan remains in existence solely to gather and distribute settlement proceeds to former Enron employees and other claimants pursuant to the Tittle and Newby class action settlements. The Enron Creditors Recovery Corp. currently serves as the Enron Corp. Savings Plan sponsor for those limited distributions.
CAUTIONARY STATEMENT: Certain statements contained in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and other statements that are other than statements of historical facts. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include, but are not limited to, political developments affecting federal and state regulatory agencies, and developments with respect to the bankruptcy of Enron. Except as required by law, Enron does not undertake any obligation to update any forward-looking statements.