AK Steel settles lawsuit with retirees for $663mn

10/08/07 - newratings.com

NEW YORK, October 8 (newratings.com) - AK Steel Holding Corp (AKS) Monday announced that it had reached an agreement with a group of retirees to settle a lawsuit for a total of $663 million.

The steel company said the lawsuit was related to its 2006 decision to cut healthcare benefits to some of its retirees. AK Steel Holding added said that the settlement covers 4,600 retirees and, under the terms of the agreement, it would transfer all its healthcare obligations for the covered retirees to a Voluntary Employees Beneficiary Association trust. The company mentioned that it will initially fund the trust with a contribution of $468 million, and then follow it up with three subsequent annual contributions of $65 million each.