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Case ID: 4894 | Employment | 08/10/2006
Sprint Nextel Corp. will spend at least $29 million to settle a class-action lawsuit with more than 88,800 current and former employees who claimed the company irresponsibly invested too heavily in its stock as part of employees' retirement plans. U.S. District Court Judge John Lungstrom approved the settlement in an order filed Aug. 4 in Kansas City, Kansas.
Sprint Nextel will pay plaintiffs a total amount that "likely is well in excess of $25 million," the filing said. In addition, Sprint must pay $3.9 million in attorney fees, the filing said. "But, although the aggregate value of the settlement is significant, no class member stands to gain more than $1,000 on an average, per-plaintiff basis," Lungstrom wrote. The case was complicated by Sprint Corp.'s merger with Nextel Communications Inc. a year ago, followed by a subsequent spinoff of the company's local telephone division, later renamed Embarq Corp. Plaintiffs claimed that defendants "breached their fiduciary duties by allowing three of Sprint's defined contribution 401(k) retirement plans to remain so highly invested in Sprint stock during a time period when Sprint stock was an imprudent investment and by failing to disclose material information to plan participants," the judge's order said. According to Lungstrom's order, 21,690 members of the plaintiff class are current Sprint Nextel employees. They will receive increased company matching contributions to their retirement portfolio valued at a total of $8.95 million, or $413 an employee. They also will receive other additional plan benefits, for which the court didn't assign a value. An additional 63,275 class members are former plan members. This group includes 16,409 people who are now Embarq employees, plus 46,866 people no longer affiliated with either company. This group will share a $4 million cash settlement fund, worth about $63 a plaintiff. Sprint also will provide this group access to financial planning services at no charge. These services would have a retail value of about $350, the order said. The four named plaintiffs in the case, originally filed in 2003, would receive an additional $5,000 as compensation for the time they devoted to the case, the judge wrote. However, the Judge denied their request for $15,000 each. Finally, about 3,844 class members are former employees who are still participants in a company retirement plan, though they weren't fully vested when they separated from the company. This group will share a $1.6 million fund, worth about $416 a plaintiff. The group also can access the free financial planning services. 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 Workers at Giant Big Apple claim they work long hours for less than the legal minimum wage without overtime pay. Employee stock option plans can be an effective investment if they are managed correctly. The class has been certified in an action filed against manufacturer Amsted Industries, Inc. on behalf of non-retired employee stock ownership plan participants who allege that the company's trustees and administrators violated the federal Employee Retirement Income Security Act by improperly reducing the benefits obtainable by participants. Eligible employees may contact the class attorneys for further information.
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. California labor law requires employers to ensure that their workers take meal breaks. The class has been certified in an action filed against Wal-Mart Stores, Inc. on behalf of current and former Californian hourly employees who worked any time from February 6, 1997, through the date that judgment is entered in the action, excluding employees who held managerial or pharmacist positions. The action alleges that the company engages in systematic denials of rest and meal breaks to workers, and forces them to work off the clock before and after they actually clock in, violating California's labor and unfair competition laws.
Williams Companies, Inc., a natural gas processor and transporter, has settled a class action suit over investments made by its retirement plans. A national collective action has been filed in Georgia against IKKA Technology, Inc. The action is brought on behalf of all managers, aged 50 and older, who have been terminated by the company as a result of corporate re-structuring. The action is brought under the federal Age Discrimination in Employment Act and seeks back pay and front pay, liquidated damages, statutory and compensatory damages as well as injunctive and declaratory relief. As a collective action, all potential claimants must voluntarily "opt-in" to the case in order to be considered a member of the class. The managers have requested that the court issue notice to all potential claimants in an effort to inform them of the pending action.
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