Andersen Hearing Denied 3rd Time

April 25, 2002

Arthur Andersen’s request to sell its assets has been delayed a hearing for the third time by U.S. District Judge Melinda Harmon, according to the Associated Press.

Now scheduled for April 29, the hearing has been further postponed to allow Andersen more time to negotiate current claims of civil fraud for a settlement.

The current claims involve a number of insurers, led by American National Insurance Company, who filed the request to deny Andersen in selling off its assets. They also want Andersen to be prohibited from releasing partners from noncompete agreements, ensuring that they do not take their clients to other firms if they resign.

Harmon postponed the hearing for the first time on April 8, allowing Andersen to reach a settlement with the University of California in a large suit filed on behalf of investors.

An agreement has yet to be met, even after a second postponement. Talks are expected to resume, and Andersen has until April 26 to file a response.

Negotiations with the Justice Department failed to settle an obstruction charge against Andersen last week. A trial is set for May 6.

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