KPC Healthcare Workers Get Nod for $5 Million Stock Plan Deal

A $5 million class settlement allowing KPC Healthcare Holdings Inc. to exit a lawsuit challenging the company’s 2015 transition to employee ownership through an employee stock ownership plan received early approval from a California federal court.

The deal resolves allegations against KPC, its employee stock ownership plan committee, and certain corporate directors stemming from the plan’s 2015 purchase of all KPC stock for $227 million—allegedly significantly more than the company’s true value. It’s slated to provide an average recovery of more than $1,600 for each of approximately 3,100 class members.

Judge Stanley Blumenfeld Jr. of the US District Court for ...