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Ex-Younkers Workers May Not Get Compensation From Lawsuit

Court Says Company Had Legal Protection

POSTED: 11:03 am CDT September 19, 2006
UPDATED: 11:38 am CDT September 19, 2006

Former employees of Younkers department stores may not be receiving more than $1 million compensation from a lawsuit they filed.

A federal appeals court has overturned a decision to award nearly $1.7 million to those who lost their jobs in a 2002 merger.

Forty-seven former employees sued parent company Saks, claiming it went back on promises it made before the merger with sister company Carson Pirie Scott.

Employee said they were assured they would receive severance pay if there were ever a change of control at Younkers.

The court has now sided with Saks saying that while Saks deliberately deceived the workers, the company carefully worked the deception in a way that provided legal protection.


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