The University of California reached an $11.5 million settlement with Goldman, Sachs & Co. yesterday for a group of Enron stock and bond purchasers who lost over $40 billion.

The University filed against Goldman, Sachs & Co., a global investment banking and securities firm, in 2004 on behalf of investors who purchased seven percent Exchangeable Notes – securities that are exchangeable for common stock in a company – issued by Enron.

The suit alleged that Goldman, Sachs & Co. violated a section of securities law, marketing the notes with a false registration statement – a document detailing vital information about a security that must be filed with the Securities and Exchange Commission before its sale. The UC Board of Regents has agreed to the settlement, which is subject to the court’s approval on Feb. 29.

This settlement covers purchases of the Enron seven percent Exchangeable Notes, which were transferable for stock in Enron Oil & Gas Co., from their issuance until Dec. 2, 2001, when Enron filed for bankruptcy.

The allocation plan comprises eligible investors who bought the Enron securities between Sept. 9, 1997 and Dec. 2, 2001. About 1.5 million purchasers, whose losses from the fraud totaled more than $40 billion, are included in the plan.

The Shooters Hill Revocable Trust was also a plaintiff, and several other defendants remain, including Barclays Bank, Merrill Lynch and former Enron officers in the case.

So far, the UC has acquired over $7.2 billion in settlements for Enron investors. Between 2000 and 2001, the UC invested in Enron based on what is now known as inaccurate information, losing $144.9 million.