Troy, Mich., As many as 150,000 employees and retirees of the former Kmart Corp. would share $11.75 million in a proposed settlement of a lawsuit against ex-company officials over the investment of pension funds in Kmart’s now worthless stock. The agreement involves those who participated in Kmart pensions from March 15, 1999, to March 6, 2003.
“The settlement is fair, reasonable and in the best interest of the class and should, therefore, be approved,” Glen Connor, a Birmingham, Ala., lawyer for one retiree who filed a class-action lawsuit, said in court papers filed Monday. The papers asked Detroit U.S. District Judge Avern Cohn to approve the deal.
The settlement would be paid from proceeds of a $25 million insurance policy from National Union Fire Insurance Co., the Detroit Free Press said.