Employees first in line in US Fidelis agreement

Employees first in line in US Fidelis agreement

Employees first in line in US Fidelis agreement

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by Associated Press

AP

Posted on March 23, 2012 at 6:56 AM

Updated Friday, Mar 23 at 11:49 AM

ST. LOUIS -- The first creditors to get paid in the US Fidelis bankruptcy settlement could be former employees -- including relatives of the company's founders.
  
Wentzville, Missouri-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.
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   Information from: St. Louis Post-Dispatch, http://www.stltoday.com
 

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