United Stock Committee Settles Employee Lawsuit
From Dow Jones/Associated Press
The committee that oversaw United Airlines’ employee-stock ownership plan settled a class-action lawsuit for $5.25 million that was brought on behalf of UAL Corp. employees.
The settlement will be paid by insurance, a law firm representing the committee said.
The UAL workers are still pursuing a suit against State Street Bank & Trust, the plan’s trustee. The suits allege that State Street and the committee held onto UAL stock too long, after they knew it was unstable. UAL had no immediate comment.