Circuit City, Ex-Workers End Dispute Over $14M Claim

Law360, New York (May 18, 2010, 2:20 PM EDT) -- Former Circuit City Stores Inc. employees who settled a class action over lost future wages for $15 million have agreed to post the settlement as a $14.2 million prepetition general unsecured nonpriority claim against the company's bankruptcy estate.

The parties filed their proposed settlement Monday in the U.S. Bankruptcy Court for the Eastern District of Virginia, ending months of wrangling over how the claim would be treated in Circuit City's bankruptcy.

Objections to the proposed settlement, which also included a $103,000 allowed priority claim in addition...
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