Mohawk and employees reach $18 million settlement

ATLANTA - One of the world's largest carpet makers has agreed to an $18 million settlement with employees who claimed the company hired illegal immigrants in an effort to depress wages.

U.S. District Court Judge Harold Murphy granted a motion by Mohawk Industries Inc. to preliminarily approve the settlement and certify the class.

Howard Foster, a lawyer for the employees, said he is very pleased with the settlement.

Mohawk attorney Juan Morillo said the company is happy to put the 6-year-old lawsuit behind it. He said the company doesn't admit any wrongdoing.

Mohawk's insurer, Zurich American Insurance Company, has agreed to pay $13 million of the settlement. It allows about 48,000 current and former Mohawk workers to claim awards.

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