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Republic Services, GreatBanc Settle Suit Over Rainbow Purchase

July 28, 2020, 5:20 PM

Former employees of Rainbow Disposal Co. negotiated a $7.9 million class settlement in their lawsuit challenging Republic Services Inc.'s 2014 purchase of Rainbow from their employee stock ownership plan, according to a settlement motion filed in the Central District of California.

The deal, announced Monday, requires Republic and defendants connected to the waste management company to pay $7.5 million, with an additional $400,000 to come from GreatBanc Trust Co., which served as the ESOP trustee. About 460 people who had money invested in Rainbow’s stock plan are expected to benefit from the deal.

The lawsuit challenges a 2014 transaction in...

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