Of course, now we know that companies were indeed inflating their earnings.

By using its own estimates of the assets' worth, according to the suit, the company inflated the fund's value.

Find out why companies inflate their profits and what can happen as a result.

The settlement resolved two federal lawsuits claiming that the companies had artificially inflated their charges over almost a decade.

But several researchers warn that many companies also have inflated expectations for the stocks underpinning their pension plans.

The company inflated its estimated $1.55 billion in 2001 cash flow by tens of millions of dollars and possibly by more, they said.

Wall Street's conventional wisdom held that while a few companies might be inflating their profits, the market as a whole was essentially honest.

The commission contended that the company had inflated its 1993 profits.

The 6-to-3 decision invalidated an accounting method that the Administration said would allow companies to inflate deductions for employee health benefits.

The company inflated its profits, and some employees enriched themselves at Enron's expense, according to the committee's report.