Employees First in Line in US Fidelis Agreement
Get Breaking News First
ST. LOUIS (AP) – The first creditors to get paid in the US Fidelis bankruptcy settlement could be former employees including relatives of the company’s founders.
Wentzville, Mo.-based US Fidelis was once the nation’s top seller of vehicle service contracts. It collapsed in 2009 amid accusations that it ripped off thousands of customers.
The St. Louis Post-Dispatch reports that US Fidelis has agreed to pay $1.45 million to 556 former employees under a settlement filed with the bankruptcy court in St. Louis. Lawyers would keep one-third of the settlement plus up to $25,000 in expenses.
Missouri Attorney General Chris Koster plans to object to the settlement plan during a hearing in April. A judge must still give the OK for the settlement.
(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)