Sprint Nextel Corp. has agreed to pay almost $29 million to settle a class-action lawsuit filed by current and former employees who had sued the company saying their retirement accounts were degraded by being tied to the company’s stock.
U.S. District Judge John Lungstrum approved the agreement last week, which will cover more than 85,000 employees who had money in the company’s retirement plan since 1998.
Susan Meagher, an attorney for the class, said employees who file claims would each receive between $400 and $1,000 in cash, increased company matching for their retirement plans or other benefits.
The class action suit had claimed that the company’s stock was too risky an investment to be included in their retirement plans.
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