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Employees First in Line in US Fidelis Agreement

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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 This material may not be published, broadcast, rewritten or redistributed.)

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