UAL workers' suit partially settled
Wednesday August 17, 3:39 pm ET
NEW YORK (Reuters) - United Airlines's employee stock ownership plan and its trustees have agreed to partially settle a class action lawsuit brought by airline employees, the two sides said on Wednesday.
Under the terms, the insurer for the employee stock ownership plan committee will pay $5.25 million to participants. Court-appointed attorneys fees and expenses will be subtracted from the settlement total, the parties said in a statement. United Airlines is a subsidiary of bankrupt UAL Corp. (OTC BB:UALAQ.OB - News).
The suit, originally filed in 2003, had alleged that the employee stock ownership plan committee and the plan trustee, State Street Bank, were aware that UAL's stock was unstable.
The committee and State Street held onto the stock as it plummeted in value even before the Sept. 11, 2001 attacks, which further weakened the stock price, the complaint on behalf of an estimated 70,000 employees stated.
State Street, owned by State Street Corp. (NYSE:STT - News) did not settle the suit, and the employees plan to take the case against the bank to trial, their lawyer Andrew Volk said in the statement.
The committee, while settling, said it continued to deny wrongdoing.
United filed for bankruptcy protection in December 2002.