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Because of its silent complicity in the Enron scandal, the Arthur Andersen company was also forced to close its doors. The fallout. In the end, 90,000 people lost their jobs; Enron employees, who had been encouraged to invest their retirement plans in company stock, lost $2 billion into the bargain. Stockholders lost another $70 billion in the Enron scandal, and the state of California sued for $6 billion in energy losses.
The collapse of Enron is now raising some big questions (see article). Andersen, the company's auditor, has admitted to an âerror of judgmentâ in its treatment of the debt of one of Enron's off-balance-sheet vehicles; these vehicles led to an overstatement of profits by almost $600m over the years 1997-2000.