ConAgra Foods Inc.

Sioux City, NE: (Jul-30-07) A series of lawsuits were brought against ConAgra Foods Inc., alleging that the company caused retirees to lose millions because its 401(k) plans were too heavily invested in company stock. The stock price dropped in March 2005 when ConAgra announced that it would restate its earnings because of income tax errors from fiscal 2002 through the first half of 2005. The suits, filed in 2005, caused company officials to announce that they had discovered tax errors and were correcting the wrongs by reporting it.

In a settlement reached, ConAgra Foods Inc. and an insurer have agreed to pay a total of $4 million to settle the three retiree lawsuits over restated earnings. ConAgra also agreed to pay $14 million to settle a lawsuit over fictitious sales and misreported earnings at United Agri Products. That action alleged ConAgra and several of the company's officers and directors violated federal securities laws by misrepresenting the company's financial performance to inflate its stock value. ConAgra sold United Agri Products in 2003. [SIOUX CITY JOURNAL: EMPLOYEE 401K]

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Published on Jul-31-07