Enron Investors' Lawyers Get $688 Million Fee

I don’t even know where to begin commenting on this huge fee:

“Lawyers for Enron Corp. investors will get a record $688 million in legal fees for recovering more than $7.2 billion from the failed energy trader’s lenders, auditors and directors, a U.S. judge ruled yesterday.”

bloomberg.com/apps/news?pid=20601087&sid=a9Q9Vzeay74Q&refer=home#

I wonder if any of the “investors” were employees who participated in the trading scams or who, against all common financial advice, had more than 4 % of their 401k’s in Enron stock.

  • kathie :bowdown:

They recovered $7.2 billion for the investors, which includes the retirees, who otherwise would’ve lost everything.

The lawyers fee is about 9.5%, which also include legal cost, which would bring their actual commission down to 7% which is the normal going rate.

Jim

What really chaps the big guys, I think, is not the lawyer fees. It’s that the employees found a way to get back the money that was stolen from them.

windfall profits!!!

I do feel terribly for the people who lost their jobs (at Enron, and uninvolved employees of the former Arthur Anderson) and their savings. Those who acted fraudulently should have been and were prosecuted for their wrongdoing. One even committed suicide I believe.

Just remember folks, do not put all your eggs in one basket. Investing a small sum in your place of employment is ok, but the people who invested all or most of their savings in Enron while working at Enron put themselves in a position where if the company went belly up (for any reason), they stood to lose both their source of income and their savings…and you can’t always expect to get that money back through the courts

harinkj, are the lawyers supposed to work for free? That fee is what they pay their employees and contractors, who put in thousands of man-hours on the case. That fee pays the light bill for their offices, their internet bill for research, their travel expenses to and from court, their office supplies. It also pays the mortgage and bills for their homes. It probably also makes the payments on the several tens of thousands most of those lawyers still have in student loans.

Just because a number LOOKS big does not mean it is.

I read the book Conspiracy of Fools, which is an in depth look at the Enron rise and fall…marvelously written. I don’t think that the ‘bad’ employees are involved in this at all…most of them were fired, at that time–or were jailed…or sadly, commited suicide or died like Ken Lay, of sudden reasons. In all honesty, if you read the book, you might take away that Ken Lay was rather…not to say naive, but possibly a bit naive to who he placed in power under him. I hold mainly Fastow who was their CFO for a while, as highly responsible, because he built shell companies for a long time, partnering with ‘secret’ investors (family members they turned out to be)…and thus began the crippling of this once mighty organization. So sad…

I encourage anyone to read the book–you’ll have a greater idea of all that went on behind the scenes there. Amazing that any REAL work ever got done.

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