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HOUSTON --- More than 1,900 participants and beneficiaries in a retirement plan sponsored by Dynegy Inc. (NYSE: DYN) have reached a $9.975 million settlement in a class-action lawsuit against the Houston-based energy provider and seven former members of the company’s benefits committee. U.S. District Judge Ewing Werlein approved the settlement in a hearing held in Houston on Friday afternoon, Sept. 14.
The suit was brought on behalf of the salaried employees of Illinois Power Company – a former Dynegy subsidiary – who participated in a Dynegy sponsored retirement plan. The employees charged that the continued investments in Dynegy stock and other actions by the company’s benefits committee represented a breach of fiduciary duties under the federal Employee Retirement Income Security Act, known as ERISA.
“We are pleased that we were able to help these Illinois Power employees recover some of what they lost in their retirement plan,” said Scott Clearman, attorney for the employees.
The settlement class is represented by Mr. Clearman and Brian Walsh of McClanahan & Clearman, L.L.P. and Murray Fogler and Tom McDade of Beck, Redden & Secrest, LLP.
Dynegy Inc. provides wholesale power, capacity and ancillary services to utilities, cooperatives, municipalities and other energy companies in 15 states in the Midwest, the Northeast and the West Coast.
Note: The expenses were paid out of the fees paid to the attorneys. In this case, the attorneys' fees and expenses were $2.495 million. |
