Talks to resolve a class action lawsuit against Arthur Andersen over its role in the Enron collapse have broken down days before the start of its criminal trial in the United States.
The company had been in talks with the Enron bankruptcy estate and other company creditors to try to resolve the threat of legal action.
It is now expected to go to trial next Monday on a single charge of obstruction of justice that was filed by the US Department of Justice.
"We worked in good faith over the last several months to resolve these matters to the benefit of all parties," Andersen said in a statement.
"During these discussions, considerable progress was made, but unfortunately, the plaintiffs could not resolve several differences among themselves and with other defendants".
Plaintiffs in the case also include several state pension funds, Amalgamated Bank and some individual investors.
PA