United Airlines stock ownership committee settles $5.25 million class action lawsuit

By Caroline Salls

Pittsburgh, Aug. 17 - The United Airlines Corp. employee stock ownership plan committee reached a settlement with plaintiffs in a class action lawsuit under which the committee's insurer will pay $5.25 million to committee participants to be divided among class plaintiffs, according to a company news release.

"Under this settlement, plaintiffs will obtain almost all of the available insurance proceeds covering the committee members, and they can now proceed to trial against the remaining defendant State Street Bank & Trust Co.," class plaintiff counsel Andrew Volk said in the release.

The settlement is subject to approval by the U.S. Bankruptcy Court for the Northern District of Illinois.

The committee consisted of six employee members - one appointed by United Airlines, two by the International Association of Machinists and Aerospace Workers and three by the Air Line Pilots Association.

Class plaintiff members were participants of the United Airlines committee between July 19, 2001 and June 30, 2003.

The trial for the plaintiffs' class members' claims against State Street is scheduled for Oct. 17.

United filed for bankruptcy on Dec. 9, 2002. Its Chapter 11 case number is 02-48191.

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