Lockheed agrees to settle federal class-action lawsuit over management of retirement accounts
Jim Suhr, The Associated Press December 16, 2014
ST. LOUIS – Lockheed Martin Corp. has agreed to settle a class-action lawsuit accusing the aerospace and defence company of mismanaging the investment accounts of its employees and retirees.
Terms of the tentative settlement announced Tuesday in federal court in East St. Louis, Illinois, weren't released. The deal averts a trial that was to have begun Tuesday in the 8-year-old case involving as much as $1.3 billion in potential damages sought by the claimants.
The plaintiffs had claimed that the Maryland-based company charged excessive fees to more than 100,000 investors in the company's retirement accounts including 401(k) plans, and that the investments were poorly managed.
The company has countered that that's untrue.
U.S. District Judge Michael Reagan has scheduled a Jan. 8 status conference in the matter.