Nordstrom Holders Sue Over Troubles

Three Nordstrom Inc. shareholders filed a suit Tuesday against the beleaguered retailer, charging it with fraud by not warning investors about the potential financial damage stemming from its employee pay practices.

The suit, filed in U.S. District Court in Seattle, asks the court that it be accepted as a class action on behalf of the approximately 76,000 Nordstrom stockholders.

In the 28-page suit, Eli De Comminges, Alphonse Kaufman, and Jessica Longston charge that between Feb. 1, 1989, and Feb. 15, 1990, Nordstrom failed to adequately report the potential problems stemming from its pay practices. The suit seeks unspecified damages.

In its fourth-quarter report, the company said it established a $15-million reserve for the back-pay claims.