Washington: Investors in the failed energy group Enron Corp said they had secured a $ 40 million settlement from Andersen Worldwide.

The deal was announced on August 27 by University of California, the lead plaintiff in a class action suit against the accountant, which audited Enron's flawed books.

Andersen Worldwide is the Swiss-based co-ordinating entity of the Andersen accounting firms. Arthur Andersen, the US company that actually examined Enron's accounts, is not covered by the settlement.

"This substantial settlement is a favourable result for the class in light of the limited role of the non-US Andersen entities," University of California general counsel James Holst said.

It was one of the biggest recoveries from an accounting firm, he said in a statement.

"We regard this settlement as only a first step in obtaining recovery for the class, and will continue to pursue damages from the remaining defendants, most of whom had far deeper involvement in the Enron debacle than the overseas Andersen firms," Holst said.

Andersen Worldwide did not admit liability or wrongdoing, the University said. The settlement was subject to court approval.

The division of the Andersen Worldwide settlement between shareholders and pension holders had yet to be determined.

Enron filed for bankruptcy in December last year, its reputation shattered by a slew of accounting scandals.