ST. LOUIS — Lockheed Martin Corp. agreed on Tuesday to settle a federal class-action lawsuit accusing the aerospace and defense behemoth of mismanaging the investment accounts of its employees and retirees, charging the investors high fees along the way.
The tentative deal announced in federal court in Illinois' East St. Louis averted an anticipated four-week trial in the 8-year-old case, which was to have begun that day, involving as much as $1.3 billion in potential damages.
Terms of the settlement were not disclosed.
The plaintiffs had claimed that the Bethesda, Maryland-based company charged excessive fees to more than 100,000 investors in the company's retirement accounts including 401(k) plans, and that the investments were poorly managed.
Lockheed Martin had countered that such claims "are false," and it was " committed to defending against the allegations at all stages of the litigation." Later Tuesday in announcing the tentative settlement, Lockheed Martin said only that the details were being finalized.
Messages left with a St. Louis-based law firm behind the lawsuit were not immediately returned.
U.S. District Judge Michael Reagan, who was to have heard and decided the case, had expected to hear opening statements on Monday but pushed those proceedings back a day, giving both sides time to resolve their issues.
"The parties have battled over virtually everything, leading the court to refer to a recent skirmish as a 'tempest in a teapot,'" Reagan wrote in a written order Sunday. "The aggressive, sometimes intractable stances the parties have taken at various times help illuminate why the case has not been settled."
