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Judge OKs $11.75M Kmart Settlement

Law360 (February 9, 2006, 12:00 AM EST) -- A judge has given his preliminary approval to a $11.75 million settlement between the once-bankrupt Kmart Corporation and its former employees, who alleged the retailer forced them to invest their pension plans in the company’s now-worthless stock.

The settlement was originally proposed in November, but Judge Avern Cohn delayed approval, asking a University of Michigan professor to determine whether the proposed sum was fair compensation.

The $11.75 million will be divided amongst the 71,000 pension fund holders. The average award will be about $162.

The highest...
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