Ex-Aeriform Workers Say PE Buyout Ruined Retirement Funds

Law360, New York (July 11, 2012, 5:02 PM EDT) -- A group of former employees of gas distribution company Aeriform filed a lawsuit Tuesday in Texas federal court alleging that American Capital Strategies Ltds' takeover of Aeriform and subsequent $90 million sale of its assets resulted in a windfall for the private equity firm and a hollowing-out of the employees' shares.

“As a direct result of the defendants' actions, the company stock was worthless and the participating employees of Aeriform lost their entire retirement account savings,” the complaint said.

Representatives for Aeriform and American Capital could...
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