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Deal Reached on Lawsuit Against Havens Steel Company

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Case ID: 4739 | Employment | 04/04/2006

Former workers of Havens Steel Company reached a preliminary settlement in a lawsuit filed over a dispute of an employee stock ownership plan. The proposed settlement of the class-action suit, which includes about 500 former employees and retirees, canceled a trial that was scheduled to begin early April 2006.

The lawyer representing the retirees claims that the terms of the settlement were not disclosed, and the settlement is not official until it is approved by U.S. District Judge Scott Wright. Wright is not expected to rule on the matter until sometime during summer of 2006.

The judges approval would resolve the dispute that began in November 2004 when a suit was filed against Havens’ former president and chief executive, and three others who were on the company employee stock ownership plan committee and board of directors: Jesse Bechtold, Don Price, Thomas Collins and Steven Cowan.

The current lawsuit was filed several months after the steel fabricator filed for Chapter 11 bankruptcy protection. The lawsuit alleges that the four officers breached their fiduciary duties by giving themselves bonuses and concentrating the plan’s investments in Havens stock at a time when the company was faltering financially.


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