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Kmart Workers Reach $11.75M Pension Deal
The Associate Press
November 29, 2005
As many as 150,000 employees and retirees of the former Kmart Corp. would share $11.75 million in a proposed settlement of a lawsuit against ex-company officials over the investment of pension funds in Kmart's now worthless stock.
The agreement involves those who participated in Kmart pensions from March 15, 1999, to March 6, 2003. Court documents say the people involved lost between $28 million and $300 million.
"The settlement is fair, reasonable and in the best interest of the class and should, therefore, be approved," Glen Connor, a Birmingham, Ala., lawyer for one retiree who filed a class-action lawsuit, said in court papers Monday. The papers asked Detroit U.S. District Judge Avern Cohn to approve the deal.
Connor's client, Quincie Rankin, a former Kmart employee in Fairfield, Ala., sued ex-Kmart chief executive Charles Conaway and other former executives and board members in March 2002. The suit said company officials invested Kmart pension money in Kmart stock after the company filed for Chapter 11 bankruptcy protection in 2002. It said officials failed to exercise proper care for the pension money.
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