Kmart Agrees to $11.75M Class Action Settlement

Law360, New York (November 29, 2005, 12:00 AM EST) -- Former employees of Kmart Corporation have won an $11.75 million settlement in their class action suit, which alleges Kmart executives kept the company’s worsening financial condition from them and urged them to continue investing in the company’s stock.

Nearly 150,000 Kmart employees and retirees who invested in Kmart’s pension fund between March 1999 and March 2003 participated in the class action suit, claiming that executives’ breach of fiduciary duty caused them to lose between $28 million and $300 million.

Participants in the suit claim that Kmart...
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