Enron Claims to be Dropped: Court Order

California has been asked to drop its claims against failed energy giant Enron:

A federal judge Thursday ordered California to drop fraud claims seeking $2 billion in refunds from Enron Corp., saying the company is protected from such suits under bankruptcy law.

U.S. Bankruptcy Court Judge Arthur J. Gonzalez ruled that no new claims could be filed against Enron after an Oct. 15, 2002, deadline he imposed following Enron's 2001 bankruptcy. He denied California's request to put the ruling on hold until the state could file an appeal, saying, "The state has failed to establish that it would suffer irreparable harm by dismissing" the suit.

The state will file an emergency request to block Gonzalez's ruling in Bankruptcy Court in New York, Atty. Gen. Bill Lockyer said in a statement.

The lawsuit, filed in June in Alameda County, accused Enron of manipulating power prices during California's energy crisis in 2000 and 2001 using a series of unlawful trading schemes.

Somehow, I don't think anyone at Enron has $2 billion to pony up.