Largest Legal Fees in U.S. History, $688 Million, in Wake of Enron Scandal
The attorneys who have assisted shareholders and investors in recovering for their losses in the wake of the prosecution and demise of Enron will receive a handsome reward for their labors-$688 million in legal fees, the largest amount ever earned in a case in U.S. history. The settlement is part of a $40 billion lawsuit by investors alleging that Bank of America, JPMorgan Chase, Citigroup participated in the accounting fraud which led to Enron's collapse.
Coughlin Stoia Geller Rudman & Robbins had the fee approved yesterday. The court stated that the fee was reasonable and was earned by "an extraordinary group of attorneys."
Coughlin Stoia Geller Rudman & Robbins and others helped investors recoup $7.2 billion, mostly from Enron's former banks. Approximately 1.5 million individuals and institutions will be eligible to share in the distribution under the settlement plan. The plan will pay about $6.79 per share of common stock and $168.50 per share of preferred stock to investors or shareholders who purchased Enron-related securities between 1997 and 2001.
Several financial institutions, including Merrill Lynch, Credit Suisse First Boston and Barclays Bank, have not yet entered a settlement and remain defendants in the case.
