Enron Corporation, founded in 1985, rose to prominence as one of the largest energy companies in the world, particularly known for its innovative business strategies and deregulated energy trading. However, beneath its glittering facade lay a web of corruption and deceit. In late 2001, it was unveiled that Enron had been engaging in systematic accounting fraud, employing complex financial structures like off-balance-sheet entities to hide debt and inflate profits. These practices kept investors in the dark and allowed the company's stock price to soar, despite the reality of its financial state.

On December 2, the situation reached a tipping point as Enron filed for Chapter 11 bankruptcy protection in Houston, Texas. This filing was pivotal as Enron's debts were estimated to be over $30 billion, making it one of the largest bankruptcies in U.S. history at that time. The filing allowed the company to restructure its obligations and seek a path forward, but the damage was already done. Once a darling of Wall Street, Enron's colossal collapse obliterated thousands of jobs, wiped out billions in stockholder equity, and raised serious questions about the integrity of corporate governance.

In the wake of the bankruptcy filing, investigative efforts revealed the extent of Enron's financial misconduct, leading to criminal charges against several top executives, including CEO Jeffrey Skilling and founder Kenneth Lay. The scandal not only resulted in significant movements to reform corporate accounting practices but also led to the dissolution of Arthur Andersen, one of the five largest audit and accountancy partnerships in the world, which was found guilty of obstructing justice in the investigation. The repercussions of the Enron scandal resonated across the finance and corporate sectors, culminating in the enactment of the Sarbanes-Oxley Act to improve corporate governance and financial disclosures.