B-K Lighting Stock Plan Suit Settles With Cash, Debt Reduction

A former B-K Lighting Inc. worker reached a class-wide settlement valued at $2.25 million in her lawsuit challenging a transaction she says drained money from the company’s employee stock ownership plan.

The deal, which is slated to benefit about 200 people covered by the lighting fixture manufacturer’s stock plan, includes a $1.5 million cash payment earmarked for plan participants, along with a $1 million reduction in B-K’s debt. This debt reduction “substantially increases the value of the B-K Lighting stock owned by the ESOP by an estimated $750,000,” according to a Tuesday motion asking that the deal be approved.

The ...