Andersen settlement rejected

WASHINGTON -- The Justice Department has rejected a proposal from accounting firm Arthur Andersen for settlement of a criminal obstruction charge stemming from the shredding of Enron Corp. documents, an Andersen attorney said today.

"They rejected our proposal," said the attorney, Rusty Hardin. "So I think all kinds of discussions with them are probably over for now. ... So we just proceed to trial ... I think we're probably through talking to the government about the case."

Hardin declined to give details of Andersen's proposal or the government's reasons for rejecting it.

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