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Feds Settle With Lay Estate

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The U.S. Department of Labor will be filing a claim for about $12 million from the estate of the late Kenneth Lay on behalf of Enron Corp. pension plans.

Lay, the founder and former chairman of Enron, Houston, died in July.

A judge in the U.S. District Court in Houston must approve the settlement before it can take effect, Labor Department officials say.

The actual amount that the pension plans will recover depends on the total amount of assets available for distribution from the Lay estate, officials say.

The agreement does not settle the Labor Department’s claims against Jeffrey Skilling, Enron’s former chief executive officer, officials say.

The department sued Lay and others in June in connection with allegations that the defendants failed to provide proper oversight of the fiduciaries running the Enron pension plans.