The firm, which once earned up to $40 million annually from Enron before the disgraced company cratered, admitted no liability in the settlement today.
“V&E met its professional obligations in its representation of Enron and we could have demonstrated that at trial. Vinson & Elkins decided to settle the matter in order to avoid the burdens of protracted litigation,” said Harry Reasoner, a partner in the Houston-based firm.
The settlement is subject to approval by U.S. Bankruptcy Judge Arthur Gonzalez in New York.
“We are pleased with this settlement, and remain focused on continuing to resolve remaining claims with major financial institutions directly involved in Enron’s collapse,” said John Ray III, chairman of the failed company’s five-member board.
Enron spiraled into bankruptcy proceedings in December 2001 upon revelations of hidden debt, inflated profits and accounting tricks. The collapse obliterated $60 billion in market value.