(Bloomberg) — Lockheed Martin Corp. agreed to settle a $1.3 billion lawsuit over claims the defense contractor shortchanged the 120,000 workers and retirees who participate in its pension plans as a trial was set to begin this week.
Workers accused the company of subjecting them to excessive fees and leaving those investing in its stock fund with returns that were worse than if they had bought shares on the open market. The settlement was disclosed yesterday by U.S. District Judge Michael Reagan in East St. Louis, Illinois, and still requires his approval.
A trial without a jury, scheduled to start Monday, was postponed for last-minute negotiations after Reagan issued a Dec. 14 order stating he wouldn't entertain any settlement proposals after the first witness was called.
Jennifer Allen, a spokeswoman for Bethesda, Maryland-based Lockheed Martin, confirmed the accord in an e-mailed statement.
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