Texas Objects To Enron Fees

The attorney general of Texas, Greg Abbott, has joined those urging a federal judge not to approve the $695 million legal fee requested by lawyers who sued banks and investment firms over the collapse of Enron Corp.

"This is a unique case with an unquestionably large recovery for the class," Mr. Abbott wrote, referring to the $7.2 billion in settlements won for Enron stockholders. "But given the enormity of the losses, can it be said that the recovery justifies such a gargantuan fee?"

In a brief filed last week, Mr. Abbott called the fee request "excessive" and said it "raises serious concerns that the award will be construed as a windfall."

A lawyer who oversaw the case, Patrick Coughlin, replied that Texas officials seemed unfamiliar with "the monumental investigation" involved. He also noted that the legal fee was calculated under an agreement with the lead plaintiff, the University of California. "There is no windfall to the lawyers," Mr. Coughlin wrote.

In Houston on February 29, Judge Melinda Harmon heard arguments for and against the fee request. Mr. Abbott's office said no one was immediately available to comment on why the state did not weigh in at that time.