Arthur Andersen LLP v. United States, 544 U.S. 696 (2005), was a United States Supreme Court case in which the Court unanimously overturned accounting firm Arthur Andersen's conviction of obstruction of justice in the fraudulent activities and subsequent collapse of Enron. The Court found that the jury instructions did not properly portray the law Arthur Andersen was charged with breaking.[1] Even after the conviction was overturned, the damage to Arthur Andersen's reputation was such that it did not return as a viable business.
Background
During the fall of Enron, Arthur Andersen, Enron's accounting firm, instructed its employees to destroy documents relating to Enron after Andersen officials learned they would soon be investigated by the Securities and Exchange Commission. On March 6, 2002, a charge of obstructing an official proceeding of the Securities and Exchange Commission was filed against Arthur Andersen LLP in the United States District Court for the Southern District of Texas. The indictment was served by Michael Chertoff, who was subsequently appointed Secretary of Homeland Security by President George W. Bush.