Krispy Kreme mulls $4.7M class action settlement

Krispy Kreme mulls $4.7M class action settlement
Tags: Coffee/Bakery/Donut, Legal Issues
August 31, 2006

Associated Press: Lawyers in a class-action lawsuit brought by Krispy Kreme workers against the troubled doughnut maker have filed a proposed $4.7 million settlement of the case in federal court in Greensboro, N.C.

If approved, the settlement filed Wednesday would see class members divide $4.7 million. Workers' shares of that settlement would be determined by how much company stock the person owned during the period covered by the suit.

The agreement also will allow workers who were given Krispy Kreme stock as part of a profit-sharing plan to transfer it into their 401(k) retirement accounts and then convert the stock into other holdings, said Krispy Kreme lawyer Rene' Thorne.