The original suit was filed by four former employees who claim IPALCO executives dumped company stock at the same time they were encouraging workers to buy it for their retirement plans. They seek approximately $100 million in compensation for losses in the value of their 401(k) and retirement plans stemming from IPALCO’s acquisition by AES, according to an Indianapolis Star report.
US District Judge David Hamilton heard arguments from both sides to determine whether to grant the suit class-action status, promising a ruling before the end of the month. Lawyers for the remaining employees seeking class action status say they only way many of their clients can join in the suit is if class action status is granted.
The legal action stems from the AES acquisition that took place in 2001. Shortly after the acquisition was complete, IPALCO’s stock price plunged 90%, costing some employees their retirement savings.