An article out today reports on the final settlement of litigation between former Enron employees and Northern Trust, a well-known money management firm. A federal judge approved a $37.5 million settlement, “which brings to $264.3 million the total amount collected on behalf of former Enron employees who had 401(k) plans with company stock.” The court also approved the payment of about $24 million in legal fees and related expenses.

The employees had charged that Northern Trust failed to adequately diversify their 401(k) investment portfolios, which were hit hard when Enron stock crashed.

The old chestnut that investments should be diversified is advice that should be heeded by investors who put their money into 401(k)'s, employers who sponsor them, and money managers who manage them.