ConAgra Settling Retiree Lawsuits

Source: Associated Press

OMAHA, Neb. (AP) — ConAgra Foods Inc. and an insurer have agreed to pay a total of $4 million to settle three retiree lawsuits over restated earnings, the company said.

ConAgra spokeswoman Stephanie Childs said Friday that under the settlement, which requires approval from a federal court in Omaha, the company also would make undisclosed changes to its benefit plans, the Omaha World-Herald reported.

The lawsuits said retirees lost millions because ConAgra's 401(k) plans were too heavily invested in company stock. The stock price dropped when ConAgra announced in March 2005 that it would restate its earnings because of income tax errors from fiscal 2002 through the first half of 2005.

When the suits were filed in 2005, a ConAgra spokesman said company officials discovered the tax errors and did the right thing by reporting them.


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