Thursday, May 18, 2006
Business Insurance is reporting:
Krispy Kreme Doughnuts Inc. will pay $4.75 million to members of its 401(k) and profit sharing plans as part of a settlement of an Employee Retirement Income Security Act class action lawsuit filed against the company and several members of its board of directors, officers and employees.
If approved by the court, the Winston-Salem, N.C.-based company will make a one-time cash payment and merge the two plans. The settlement money, less expenses, will be shared by plan participants from Jan. 1, 2003, through May 12, 2006.
The company had been sued for breach of fiduciary duty with regard to the administration and management of the two plans in March of 2005.