Countrywide Settles with Former Employees Over Retirement Losses
A $55 million dollar settlement was reached between Countrywide Financial Corporation and disgruntled former employees over retirement plan losses. The Los Angeles federal judge recently approved the settlement citing the fact that the company had violated the Retirement Income Security Act of 1974 when they failed to monitor employee retirement funds, which had been held in a company stock.
The Alvidres vs. Countrywide Financial Corp., suit was field in 2007 after employees learned they would not receive their retirement funds due to Countrywide’s mishandling of company stocks. A U.S. District Court Judge agreed and awarded the settlement on August 24, 2009 on behalf of ex-Coutrywide employees. Final approval for the settlement is slated for Nov 16, 2009.
A spokeswoman for Bank of America Corp, who bought out Countrywide last year, explained that they were settling to avoid further cost and uncertainty in regards to litigation and that the move was not a formal admission of wrongdoing.
The settlement encompasses all partipating class action members who had a claim in retirement funds spanning January 31, 2006 to July 2008.
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