(Bloomberg) — Lockheed Martin Corp. agreed to pay $62 million to end a lawsuit over claims it shortchanged 120,000 workers and retirees who participated in its pension plans.
The beneficiaries accused the defense contractor of subjecting them to excessive management fees and leaving those who invested in the company stock fund with returns that were worse than if they'd bought shares on the open market.
While a settlement in principle was announced on the eve of trial in December, the parties only Friday revealed the dollar amount in a court filing seeking preliminary approval of the deal.
Lawyers for the plan participants said in a statement the sum is the greatest ever paid by a single employer to resolve such a suit. Their clients sought $1.3 billion in damages.
The accord requires approval from U.S. District Judge Michael Reagan in East St. Louis, Illinois.
The Bethesda, Maryland-based company admitted no wrongdoing.
'Critical' Work
"Lockheed Martin has agreed to settle this matter so that we can return our focus to the critical and important work we are performing for our customers," the company said Friday in a statement.
