A judge in Houston, Texas, has approved the first settlement to emerge from shareholder and employee lawsuits stemming from Enron’s collapse.

Andersen Worldwide SC, the international umbrella organisation of auditing firm Arthur Andersen LLP, has agreed to pay $40m to settle lawsuits from Enron investors and employees.

The chairman of Andersen Worldwide’s Board of Partners took over as acting chief executive today to try to manage an orderly dismemberment of the crisis-ridden company’s non-US operations.