Arthur Andersen trial jury 'deadlocked'

The Texas jury in its seventh day of deliberating Arthur Andersen LLP’s obstruction of justice trial has said that it is deadlocked.

‘‘We are not able to reach a unanimous decision,’’ the jury said in a note sent to US District Judge Melinda Harmon.

Harmon told lawyers she would be telling jurors to continue to try to reach a verdict.

The nine-man, three-woman panel discussed the case for more than 56 hours since deliberations began last Thursday morning.

The jury is trying to decide if the Chicago-based accounting firm illegally obstructed justice by shredding documents to thwart federal regulators investigating former client Enron Corp.

It is the first criminal trial to emerge from Enron’s stunning fall last year.

The judge did not immediately address the Houston jurors and was reviewing two different proposals of what she should tell them.

One was a version she had and the other was presented by the defence.

Andersen is accused of shredding documents and wiping out computer records related to Enron and its accounting practices.

The firm argued its promotion of a document retention policy that calls for destruction of unneeded papers was a routine effort to organise files.

The trial began with jury selection on May 6.

Andersen’s US work force of 28,000 has dropped to about 10,000 as the firm lost more than 670 clients this year, most of them since an indictment against the company was unsealed March 14, said CE Andrews, global audit practice director.

Andersen’s lead attorney, Rusty Hardin, while optimistic of acquittal, has said a mistrial because of a deadlocked jury would be a victory for the firm. He also said Andersen would be ready if a hung jury led to a second trial.

‘‘Yes, we’d do this again,’’ he said.