[JURIST] A federal judge has ruled that State Street Bank and Trust Company [bank website] will not be held responsible for major losses in a United Airlines (UAL) [corporate website] employee stock-ownership plan. Over 70,000 United employees and retirees filed a class action lawsuit [JURIST report] in 2003 alleging that the trustee bank held on to UAL stock for too long, watching it rapidly deteriorate in value, despite knowing that the corporation was unstable. US District Court Judge Samuel Der-Yeghiayan disagreed, saying State Street did not know that United was nearing bankruptcy, so it could not have been expected to sell the UAL stock. A previous settlement with the employee stock-ownership plan committee allows participants to split $5.25 million, which is expected to give each employee and retiree only $20. The plaintiffs plan to appeal the ruling. AP has more.
Previously on JURIST's Paper Chase...
- United files reorganization plan in bankruptcy court
- United bankruptcy plan deadline extended
- Bankruptcy judge allows United to scrap pension plans
- Judge certifies class action by United Airlines employees
- Judge approves extension in United bankruptcy case
- US bankruptcy judge nixes United deal with pilots