If the generation of $7.8 billion in settlement monies for Enron's fleeced investors doesn't give you a deep sense of year-end justice being done, you haven't seen the documentary chronicling the rise and fall of one of the most arrogant corporate economic criminals in American history -- ENRON -- The Smartest Guys in the Room.   (see the trailer here)

These monies were not, however, torn from the entrails of ENRON's corpse nor taken from the pockets of its principals. These funds, as Forbes.com reports in Judge Mulls $7.8B Enron Settlement Plan, "come mostly from such financial institutions as Bank of America, JPMorgan Chase & Co., Citigroup and Canadian Imperial Bank of Commerce," companies that lawsuits allege "worked with Enron [and] participated in the accounting fraud that led to the bankruptcy of the once-mighty energy company."

The Settlement Plan? 

According to the AP article carried by Forbes.com,

Most of the money will be distributed to investors and shareholders who lost money on securities directly issued by Enron or its predecessor companies. A small portion will go to those who got securities from Enron-related entities.

In general, the plan is calculating shares of the settlement fund based on a formula that factors in such things as when a security was bought or sold, the purchase price paid and the type of stock that was bought.

To be eligible for the settlement, investors and shareholders needed to have bought Enron or Enron-related securities between Sept. 9, 1997 and Dec. 2, 2001. 

The Dispute?

With this much money at stake and so much damage done to investors, you can imagine that there is not simply one dispute but many.  

Robert Finkel, for instance, an attorney representing investors who have already won between $60 and $80 million from financial firms in securities suits was quoted as saying

It's our money. . . There should be no commingling of money."

And Stephen Neuwirth, representing another group of investors, has objected that the plan prevents shareholders who received their Enron stock as gifts from filing claims.  

For a copy of the plan and other explanatory materials for Enron Shareholder Class members, click here.