A federal judge has approved a settlement between Dynegy and participants in one of its retirement plans.
The Houston-based energy company had agreed to pay $10 million to more than 1,900 participants and beneficiaries of a retirement plan at Illinois Power Co., a former Dynegy subsidiary, according to the Houston Chronicle.
The employees had sued Dynegy and seven former members of its benefits committee, claiming that the committee violated federal law via its handling of the plan’s investments in Dynegy stock and through other actions, the newspaper reported.
The settlement was agreed to and funded by Dynegy’s insurers in January, according to a company spokesman quoted by the Chronicle. The McClanahan & Clearma law firm, which represented the employees, reportedly said the settlement affects all plan participants or beneficiaries whose plan account balances were invested in Dynegy common stock between February 1, 2000 and January 24, 2007.