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Compliance June 29, 2006
Kmart Settles Company Stock Lawsuit
June 29, 2006 (PLANSPONSOR.com) - A US District
Judge has approved an $11.75 million settlement of a lawsuit
against Kmart Corp.
Reported by Rebecca Moore
The Associated Press reports that about 125,000 employees and retirees of the former Kmart Corp. will share in the settlement.
The lawsuit claimed former company executives acted improperly when they invested pension money in company stock after the company filed for Chapter 11 bankruptcy, according to the AP.
The settlement applies to those who participated in the Kmart pension plan from March 15, 1999, to March 6, 2003. A lawyer representing the employees said the allocation of the recovery to participants will be based on their individual holdings in the pension plan.
Kmart emerged from bankruptcy in 2003 and merged with Sears, Roebuck and Co. in 2005 to form Sears Holdings Corp.