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Benefits November 11, 2011
YRC Worldwide Agrees to $6.5M Settlement of Stock Drop Suits
November 11, 2011 (PLANSPONSOR.com) - YRC Worldwide Inc. has agreed to pay $6.5 million to settle lawsuits brought by its employees over losses from company stock investments in their retirement accounts, the Kansas City Star reports.
Reported by Rebecca Moore
Employees claimed the plan continued to offer the company stock option after it was no longer prudent (see Stock Drop Suit Survives Initial Challenge); the share price plummeted from high of $25.96 per share in October 2007, to a low of $0.45 per share in March 2010. In May, the U.S. District Court for the District of Kansas rejected the trucking company’s Employee Retirement Income Security Act (ERISA) Section 404(c) defense against giving plaintiffs class action status (see Court Rejects 404(c) Defense in Certifying Stock Drop Suit Class).
According to the Star, YRC disclosed the settlement, reached on Halloween, in its quarterly financial filing with the Securities and Exchange Commission. The settlement applies to employees who were participants in the plan since October 25, 2007.
The filing said employees covered by the class action lawsuits would not be able to opt out of the settlement agreement.