On November 2, 2009 YRC announced an exchange offering in which creditors would acquire 95 percent of the company's common stock, thereby wiping out the plan's investment in the pension fund. Yellow Freight allegedly tried to eliminate their corporate debt to investors to improve their balance sheet and reduce the amount of interest they have to pay the bondholders. According to the suit, the trustees of the ERISA plan have continued to buy and hold the Yellow Freight stock in the plan, despite the fact that the financials of the company have decreased inexorably over the last 18 months, causing a reduction in the value of the retirement savings accumulated for members of the plan.
Yellow Freight Pension Plan ERISA
YRC, a Fortune 500 company and one of the largest transportation service providers in the world, is located in Overland Park, a suburb of Kansas City. The case, Hanna et al v YRC Worldwide, case no 2:09-cv-02593 with Judge Lungstrum presiding, is on file in federal court in Kansas City, Kansas. The defendants are Bill Zollars, Chief Executive Officer and Chairman of the Board for Yellow Freight, as well as the members of the committee who are responsible for the plan.