Suit Charges Agway Trustees Improperly Invested Assets

Law360, New York (October 17, 2006, 12:00 AM EDT) -- The U.S. Department of Labor has filed a lawsuit alleging that Trustees of bankrupt agricultural products retailer Agway Inc.’s employee pension benefit plan improperly invested $50 million of the plan’s assets.

The lawsuit, filed Thursday, charges 47 defendants, including numerous executives, with valuing Agway company shares at prices above market value, and with giving plan participants false information. The company itself has not been named as a defendant in the lawsuit.

The suit asks that defendants repay all losses to the plan which resulted from the...
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