Alerus to Pay $4 Million to Exit KPC Stock Plan Class Action

KPC Healthcare Holdings Inc. workers who sued over their employee stock ownership plan secured a $4 million settlement with plan trustee Alerus Financial NA, in addition to a separate $5 million deal with other defendants, a California federal court filing shows.

The deal is expected to provide about 3,100 participants in the KPC stock plan with gross payments of $1,290 each, plan participant Danielle Gamino said in the Oct. 7 motion for preliminary settlement approval. The settlement, which was reached after multiple private mediation sessions spanning a three-month period, resolves claims challenging Alerus’s role in the disputed stock plan transaction. ...