Under two separate deals reached over the last several days, JP Morgan and Citicorp agreed to pay Enron investors, including the University of California, a combined $4.2 billion to settle allegations that the firms helped the once-thriving trading giant defraud investors by moving massive amounts of its debt off book. UC is the lead plaintiff. The state university filed numerous suits after it and other investors lost tens of billions of dollars invested in Enron. UC charged that JP Morgan and Citicorp participated in convoluted schemes to essentially rob Enron investors, including funneling money to secretly controlled partnerships, in violation of the 1934 Securities and Exchange Act. UC announced June 14 that JP Morgan settled for $2.2 billion. Four days earlier, it had announced that Citicorp agreed to pay $2 billion to end the litigation. The settlement sizes are unprecedented for stock fraud cases, said Judge J. Lawrence, a retired judge who is advising UC. According to James E. Holst, the university?s general counsel, the agreements represent ?an extremely important and very substantial recovery for Enron investors and sustains the course of highly favorable settlements.? On top of the recent $4.2 billion in settlements, UC previously recovered close to $500 million from its class-action settlements with other banks, investment firms, and accountants, including Lehman Brothers, Bank of America, Arthur Anderson, and some of Enron?s outside directors. Included in the recovery is a $168 million deal it reached in January for alleged illicit gas trades (<i>Circuit<\/i>, Jan. 14, 2005). How much UC will receive will depend on the number of claims made on the final settlement pot and the court?s final distribution plan, said UC spokesperson Trey Davis. Other plaintiffs include the San Francisco City and County Pension Trust Fund and the Washington State Investment Board. The deals with JP Morgan and Citicorp will become final only after they are approved by the UC Board of Regents and the two firms? boards of directors. When the boards will take up the settlement is not known, Davis said. Remaining defendants in the ongoing litigation include Merrill Lynch, Credit Suisse First Boston, Deutsche Bank, Barclays Bank, the Canadian Imperial Bank of Commerce, and the Royal Bank of Canada.