New York, NY: (Jan-10-08) A class action lawsuit was filed against General Motors Corporation, by employees and retirees, who claimed that the company mishandled company pension and retirement funds. The suit, filed in 2005, stated that GM invested too much of its own stock in employees' retirement funds.
As part of a settlement reached, sources stated that the company agreed to a $39 million payout to resolve the class action claims. Employees and retirees will split more than $25 million to defray losses sustained when company stock held in 401(k) plans lost value. The remaining amount is said to be split among the three law firms representing employees and retirees. Apart from the monetary settlement, retirees will be offered heavily discounted financial counseling services from Ayco, a subsidiary of Goldman Sachs Group Inc. The financial services, which typically are offered only to senior executives, are valued at $15 million. [
