Wednesday, June 1 2005 09:54 Hrs (IST) - World Time -

Washington: In an unexpected verdict, the US Supreme Court yesterday (May 31, 2005) threw out the June 2002 conviction of the Arthur Andersen accounting firm for destroying documents related to collapsed energy major Enron Corporation.

The Court ruled unanimously that the jury instructions at the trial for the now-defunct company were improper.

The decision was a major defeat for US Department of Justice, which prosecuted one of the nation's largest accounting firms against the advice of numerous critics, who believed the case was too weak for criminal trial.

The Andersen firm itself is all but disintegrated. Many Andersen accountants and support staffers scattered to rival companies after Andersen's criminal conviction.

At present, only about 200 employees perform administrative and legal duties for Andersen, which exists mainly to fight shareholder lawsuits related to its work for Enron, Global Crossing Ltd and other clients.

Chief Justice William H Rehnquist, writing for the court, said the judge's instructions to the jury were too loose, failing to require proof that Andersen "knowingly" obstructed justice.

The instructions, he said, "failed to convey the requisite consciousness of wrongdoing" on the part of Andersen and its employees.

"Indeed," said Rehnquist, "it is striking how little culpability" the instructions required.