Williams Co. Reaches Agreement to Settle 401k ERISA Class-Action Litigation
TULSA, OK, September 19, 2005 -- Williams (NYSE: WMB) today announced that it has reached an agreement to settle litigation filed in 2002 under the Employee Retirement Income Security Act against the company, its board of directors as well as members of the company's investment and benefits committees.
The plaintiffs are individuals who participated in the company's 401k retirement plan during a period that began July 24, 2000.
The settlement, which is subject to court approval and certain other conditions, provides for Williams to pay $55 million to plaintiffs. Of that amount, $50 million is covered and will be paid by insurance.
In the lawsuit, plaintiffs alleged that the defendants breached their fiduciary duties to 401k plan participants related to investments in the common stock of Williams and Williams' former subsidiary, Williams Communications Group.
As part of the settlement, plaintiffs will release all defendants from claims related directly or indirectly to the suit and company's 401k plan.
The company's 401k retirement plan that is, in part, the subject of today's announced settlement continues to be under investigation by the U.S. Department of Labor.
About Williams
Williams, through its subsidiaries, primarily finds, produces, gathers, processes and transports natural gas. The company also manages a wholesale power business. Williams' operations are concentrated in the Pacific Northwest, Rocky Mountains, Gulf Coast, Southern California and Eastern Seaboard. More information is at http://www.williams.com.
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