The reported $600 million settlement with Austrian bank Bawag for its alleged role in the collapse of Refco should bring smiles to the faces of creditors and investors. It also may make them fighting mad. According to the Financial Times, among those standing to gain from the settlement is private equity firm Thomas H. Lee Partners, reportedly set to receive some $50 million from the settlement, thus appearing to legitimize its claim of being a victim/investor. In addition, the FT reports, the firm can walk away with another nice bit of change in the form of a “contingency” payment depending how much Bawag sells for. Investors, however, don’t see the Lee firm as a victim. In fact, a number of investors have filed a securities class action against the firm for failing to conduct a “reasonable investigation” of Refco before the initial public offering that got the collapse going. In the end, then, depending on the outcome of that lawsuit, investors still may get Lee’s piece of the settlement pie.