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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.
Unlike Enron, Fairfax hasnât been charged with any wrongdoing, and the stock has gone up since Boyd covered the company. In September, John Gwynn, a stock analyst named in the suit, was fired by his brokerage for allegedly leaking his Fairfax research to the hedge-fund managers. Chanos is still short Fairfax and refuses to talk about the case.