Raydon, Lubbock National Sign $2.4 Million Stock Plan Settlement

Florida defense contractor Raydon Corp. and Lubbock National Bank will pay $2.4 million to settle a federal court class action challenging a $60.5 million transaction in which Raydon became employee-owned through an employee stock ownership plan.

The settlement, announced Wednesday in court papers filed in the U.S. District Court for the Middle District of Florida, requires the Raydon defendants and Lubbock to contribute $1.2 million each to a settlement fund that’s expected to benefit at least 109 people who held retirement savings in Raydon’s ESOP.

The settlement ends a lawsuit led by Raydon stock plan participant Stephanie Woznicki, who accused ...