Retirees v Aquila, Inc.
Aquila Benefit Plan Participants Say They Should Have Been Warned About The Company's Troubled Stock
A class action has been filed on behalf of current and former employees of energy distributor Aquila, Inc. (NYSE: ILA) who participated in its Retirement Investment and Stock Purchase plans between January 1, 1999 and May 5, 2004. The suit alleges that Aquila induced plan participants to make significant investments in Aquila stock through misrepresentations regarding the financial status of the company, in violation of the Employee Retirement Income Security Act (ERISA).
The complaint alleges that Aquila knew that the company's financial future was uncertain and nonetheless weighted its retirement plans toward the purchase of company stock and made statements to plan participants designed to induce them to make significant investments in company stock through the retirement and stock purchase plans. These actions violated Aquila's fiduciary duties to the plan participants and run contrary to federal law, plaintiff's claim.
The plaintiffs seek damages for their lost investment value together with interest, costs and other statutory damages.
