BellSouth agrees to settle lawsuit with employees

<p>BellSouth Corp. agreed to settle with employees who alleged that the phone company improperly required them to hold a significant portion of their savings and retirement plans in BellSouth stock.</p><p>Under the proposed settlement, which was filed May 10 in U.S. District Court in Atlanta, BellSouth agreed to pay matching contributions in cash instead of company stock, add investment options to its plans and pay the plaintiff's lawyers $3.68 million. Judge Owen Forrester has ordered a hearing on the proposal, which will take place June 13.</p><p>The proposal also says that if BellSouth is acquired by or merges with another company, the successor company will be obliged to fulfill the terms of the settlement. BellSouth agreed in March to be acquired by AT&T Inc. for $67 billion.</p><p>BellSouth spokesman Brent Fowler declined to comment because litigation is still pending.</p><p>Employees first filed suit against the company nearly four years ago, complaining that the company breached its fiduciary duty by imprudently investing a significant amount in BellSouth stock. In June 2002, 40 percent of the company's plan, or more than $1.16 billion, was held in BellSouth stock, the plaintiffs said in court documents.</p><p>The Atlanta-based company has continued to deny any wrongdoing, and the court has not decided in favor of either party. The settlement was made in order to avoid the costs of a trial, according to court papers.</p>

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