Enron (Bankruptcy)

Enron was an American energy company that became infamous for its massive accounting fraud, leading to its bankruptcy in 2001. Executives used deceptive financial practices to hide debt and inflate profits, misleading investors and employees. When the truth emerged, Enron's stock plummeted, and thousands lost jobs and savings. The scandal prompted significant reforms in corporate governance and accounting practices, including the Sarbanes-Oxley Act, aimed at increasing transparency and accountability in financial reporting. Enron's collapse is often cited as a cautionary tale about corporate ethics and the importance of regulatory oversight in preventing financial misconduct.