Lawsuit filed on behalf of former Spartan International employees

<p>More than 1,200 former Spartan International employees lost hundreds of thousands of dollars in retirement savings, insurance benefits and investments when the Spartanburg-based textile company suddenly shut down in 2001, according to a lawsuit.</p><p>A suit filed Friday in U.S. District Court in Augusta, Ga., on behalf of former employees accuses Spartan International's officers and directors of mismanagement, misconduct and violation of the federal Employee Retirement Income Security Act of 1974.</p><p>The suit alleges breach of fiduciary duties, negligence, and securities violations. It claims this was done with the knowledge and consent of the company's top managers and board members.</p><p>The suit asks for actual damages of more than $550,000, plus punitive damages and attorney's fees.</p><p>Among the defendants in the suit are Walter S. Montgomery Jr., former Spartan International president and chairman; Barry Leonard, former president and chief executive officer; Larry J. Ostrower, former vice president and chief financial officer; Rocky A. Mankins, former vice president and treasurer; and six former directors, including Spartanburg Mayor Bill Barnet and Mac Cates.</p><p>The suit claims more than $555,068.68 in matching 401(k) funds for employees were not deposited in 2000 and an undetermined amount was not deposited in 2001. The suit says beneficiaries also were not notified of the values of their plans in either year.</p><p>"There are people counting on this money for their retirement," said Louis Saul, the Augusta attorney who filed the suit on behalf of former employees in three states.</p><p>"This is a wrong that should be righted."</p><p>Montgomery did not answer calls at his home Thursday seeking comment.</p><p>Spartan International was founded in 1890 and was known for most of its history as Spartan Mills. The company ran many local textile plants, including Spartan, Startex, Beaumont and Whitney mills.</p>

http://accesswdun.com/article/2004/10/158172