Do former employers have a time limit on making 401k disbusments? I submitted all of the paperwork to have a lump sum distribution almost 3 months ago. Are there any laws that regulate this type of disbursement?

The time frame should be stated in the plan documents. It depends on the plan. Some plans only divest quarterly, so you may have to wait for the next divestiture. Have you asked the plan admins? What do they say?