Kansas City, MO: (Jul-25-07) A class action lawsuit was brought against Aquila Inc., alleging that they should have recommended dumping its stock from employees' retirement funds during Aquila's risky boom years. The suit was filed in September 2006 by a former employee in the US District Court in Kansas City. The suit was against the Kansas City-based company and its board of directors for promoting the company's stock as a conservative investment for participants in the company's retirement plan. The class included more than 7,000 current and former employees who put Aquila stock into the company's retirement plan from 1999 to May 5, 2004.
In a settlement reached, Aquila agreed to pay $10.5 million to end the class action suit. Aquila admitted no wrongdoing but entered into the settlement to avoid protracted litigation. [KANSAS CITY BUSINESS JOURNAL: AQUILA ERISA]
