Minnesota hearing aid company Starkey Laboratories Inc. will pay $173,000 to settle a federal lawsuit by current and former employees who say the company failed to protect their employee stock ownership plan from a $30 million fraud scheme committed by certain former executives.
The settlement, filed March 12 in the U.S. District Court for the District of Minnesota, is expected to benefit about 4,000 current and former participants in Starkey’s stock plan. It resolves Employee Retirement Income Security Act claims against Starkey and several individual defendants, including chief executive officer William F. Austin and president Brandon Sawalich.
The lawsuit seeks ...
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