In a statement, the ailing firm said, "We worked in good faith over the last several months to resolve these matters to the benefit of all parties. During these discussions, considerable progress was made, but unfortunately, the plaintiffs could not resolve several differences among themselves and with defendants other than Arthur Andersen."

In mid-April, Andersen had agreed to pay $300 million to settle the barrage of lawsuits against it.

Andersen went to court earlier this week in Arizona over the Baptist Foundation of Arizona lawsuit that alleged Andersen helped cover up fraudulent accounting that led to BFA's investors' losing nearly $600 million. The trial was originally scheduled to begin in early March, but it was called off on March 1 when Andersen agreed to pay a $217 million settlement. Then, four weeks later, Andersen's insurance carrier -- Andersen-owned Professional Services Insurance Co. Ltd -- backed out of the agreement.

Andersen is set to go to trial May 6. An attempt to have the case postponed until June was unsuccessful.

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