Krispy Kreme employees had sued the company last year, alleging that they lost millions of dollars in retirement savings because company executives hid evidence of declining sales and profits. A settlement of $ 4.7 million has now been reached between the company and the workers.
The class-action lawsuit was filed in federal court in Greensboro last year. The suit said that company executives said nothing about the company's troubles, and workers who bought stock for their 401(k) accounts, or were paid stock in bonus plans, had no way of knowing that the stock was a risky investment.
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