3/1/2012 12:42:00 AM
NEWS BRIEFS
Report: Pension Misuse Case at Rockford Products Settled
Former Rockford Products employees approved a $1.75 million settlement with former executives over allegations of pension fund mismanagement, the Rockford Register Star reports.
“The lawsuit, filed in September 2008, claimed employees at the fastener company were given the option of investing their pension dollars in Rockford Products stock or a general fund, which was believed to be invested in other sources,” writes Sean Driscoll of the Star.
But employees reportedly claimed company officials secretly bought Rockford Products stock with general fund money, which resulted in millions of dollars lost when the company went bankrupt in August 2007.
The class action suit involved nearly 500 former employees, which will each receive an estimated $3,500 from the settlement, based on court documents. More than $600,000 will cover attorney fees and expenses, according to the Star.
The settlement was approved by U.S. District Court Judge Frederick Kapala on Feb. 14. ©2012 GlobalFastenerNews.com
Former Rockford Products employees approved a $1.75 million settlement with former executives over allegations of pension fund mismanagement, the Rockford Register Star reports.
“The lawsuit, filed in September 2008, claimed employees at the fastener company were given the option of investing their pension dollars in Rockford Products stock or a general fund, which was believed to be invested in other sources,” writes Sean Driscoll of the Star.
But employees reportedly claimed company officials secretly bought Rockford Products stock with general fund money, which resulted in millions of dollars lost when the company went bankrupt in August 2007.
The class action suit involved nearly 500 former employees, which will each receive an estimated $3,500 from the settlement, based on court documents. More than $600,000 will cover attorney fees and expenses, according to the Star.
The settlement was approved by U.S. District Court Judge Frederick Kapala on Feb. 14. ©2012 GlobalFastenerNews.com
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