Kmart and employees have decided to settle for $11 million, according to Detroit Free Press staff writer David Ashenfelter:
Up to 150,000 current and former Kmart employees who participated in Kmart pension plans before the company’s historic collapse will share $11.75 million under a proposed settlement of a lawsuit against the retailer’s former officers and board members for investing the pension plans in now-worthless Kmart stock.
If approved, the settlement could help to heal some of the ill will many employees felt toward Kmart officers who, they contend, misled pension plan participants about the company’s failing financial condition as the retirement plans bought stock that steeply declined in value after the company filed for Chapter 11 bankruptcy protection in January 2002.
How much each person receives will be determined by how many people held Kmart stock in the retirement plan, how much they held and when they acquired it.
The proposed class consists of all participants and beneficiaries of the plan from March 15, 1999, through March 6, 2003. Court documents have pegged their loss at between $28 million and $300 million.
For the rest of the piece, click the above link.