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July 19, 2001
Xerox Facing $300M Pension Ruling
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The newspaper, citing lawyers for former employees as sources, said Judge David R. Herndon of the U.S. District Court for the Southern District of Illinois ruled on July 3 that Xerox incorrectly calculated "lump sum" retirement payments given to departing employees.
The miscalculation resulted in lower payments than the workers were due under federal pension-benefits rules.
The judge, who is expected to issue a formal ruling within a few weeks, is unlikely to specify damages in the class-action case for several months, said Douglas Sprong, one of three lawyers representing the former employees.
But Sprong told the Journal that most Xerox retirees choose lump-sum compensation, and he estimated the court would ask Xerox to pay the retirees between $100 million and $300 million.
Lawyers for the employees say their case covers at least 25,000 former Xerox workers who elected to receive their pension benefits in a single payment rather than monthly checks, the newspaper said.
Click here to view a Reuters story.