Honeywell Reveals $14M ERISA Suit Settlement

November 8, 2004 ( - Honeywell International Inc. has hammered out a $14-million agreement to settle a fiduciary breach lawsuit filed by participants in its retirement plan.

Honeywell revealed the settlement in a US Securities and Exchange Commission filing. Honeywell and several of its current and former officers and directors were defendants in the class action lawsuit filed in the United States District Court for the District of New Jersey.

The suit charged that defendants breached their fiduciary duties to participants in the Honeywell Savings and Ownership Plan by making false and misleading statements, failing to disclose material information concerning Honeywell’s financial performance, and failing to diversify the Savings Plan’s assets and monitor the prudence of Honeywell stock as a Savings Plan investment.

Honeywell said in the SEC document that the agreement in principle also included granting Savings Plan participants greater diversification rights. The company said the settlement will be fully covered by its insurance carriers.