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Case ID: 2952 | Employment | 08/30/2004
A class action has been filed against energy services holding company TXU Corporation and its officers, executives, and board of directors on behalf of participants and beneficiaries of the TXU Thrift Plan who invested in TXU common stock through the plan between November 23, 2001, and October 11, 2002. The action alleges that the defendants breached their fiduciary duties to plan participants, violating the federal Employee Retirement Income Security Act. The action seeks compensatory damages equal to the losses suffered by plan participants from their retirement accounts.
In November 2001, TXU announced that it was selling its British electricity distribution business and portrayed the deal as beneficial to the company. TXU Europe completed the sale of its U.K. electricity distribution business on January 18, 2002. On October 4, 2002, TXU's problems in its U.K. operations and the effect on the company's liquidity began to emerge. TXU announced that it was revising its earnings expectations for fiscal 2002 and 2003 downward. On October 14, 2002, before the market opened for trading, TXU finally acknowledged the full effect of the problems in its U.K. operations. The company announced that it was taking "dramatic actions" to protect its credit. TXU then cut its quarterly dividends to 12 cents per share from 60 cents. Market reaction to these disclosures was swift and brutal. On October 4, 2002, TXU common stock closed at $27.04 from a close of $32.90 on October 3. On October 7, TXU common stock closed at $22.64, and on October 8, TXU common stock fell to a low of $13.85. Interestingly, TXU Chairman Erle Nye sold over 95,000 shares of TXU common stock between May and September 2002 for over $4.6 million. During that period, he was making public statements about the strength of the company. The action alleges that the defendants either knew or were in a position to discover the facts relevant to the suitability and fair pricing of TXU stock during the period of the company's financial difficulties. They had a duty to conduct an independent investigation into, and continually monitor, the merits of all the investment alternatives in the plan, including TXU securities, to ensure that each investment was suitable, and they allegedly failed in their duties. Because the plan was heavily invested in TXU stock, its financial well-being was severely damaged by the British utility debacle. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Employment Cases of Interest Federal civil rights legislation prohibits discrimination based on gender, age, race, and national origin. A class action has been filed against clothier Abercrombie & Fitch Company on behalf of non-whites who allege that they were wrongfully refused jobs or terminated based on their race, ethnicity, or national origin in violation of Title VII of the federal 1964 Civil Rights Act. A class action lawsuit has been filed in the Southern District Court of Florida against Sushi Takara, Inc. The case involves violations of the Fair Labor Standards Act. No additional information about the substance of the allegations is available at this time. Classactionamerica.com will monitor this case and provide additional details as soon as they become available. International Business Machines Corporation, (IBM) faces a lawsuit that was filed in federal court for allegedly not paying overtime to tens of thousands of rank-and-file employees. A statewide collective action has been filed in Texas against Pinkerton's, Inc. and its parent, Securitas Security Services USA, Inc. The action is brought on behalf of all Texas residents employed as security guards by Pinkerton's or Securitas who were not paid overtime compensation during their employment. The action is brought under the federal Fair Labor Standards Act and seeks statutory damages and back pay as well as injunctive and declaratory relief. As a collective action, all potential claimants must “opt-in” to be considered a member of the class. The guards have asked the court to issue notice to all potential claimants. A class action lawsuit has been filed in U.S. District Court for the Southern District of Florida against Muddy Waters Investors, Inc. The case involves violations of federal labor law. No additional information about the substance of the allegations is available at this time. Classactionamerica.com will monitor this case and provide additional details as soon as they become available. A class action lawsuit has been filed in the District Court of Kansas against Akal Security, Inc., a New Mexico based provider of private securities on military bases, for violations of the Fair Labor Standards Act (FLSA). Class members are suing for unpaid overtime compensation and retaliation. They seek reinstatement, lost wages and benefits, unpaid overtime, punitive damages, and attorney's fees and costs of the action. |
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