An Illinois Appeals court on Friday upheld a lower court ruling that office equipment maker Xerox Corp. underpaid retirement benefits to former workers and must pay damages of about $300 million.
The Seventh Circuit Court of Appeals in Illinois affirmed a lower court’s opinion in favor of the former employees in a class action suit against Stamford, Connecticut-based Xerox, which is best known for its office photocopiers.
The ruling comes after an Illinois district court on Thursday ruled that International Business Machines Corp.’s defined contribution pension plan was unfair to older employees. IBM said it would appeal the ruling.
Xerox’s case was originally filed in 2000 against Xerox’s pension plan, The Retirement Income Guarantee Plan, on behalf of as many as 25,000 employees, challenging the methodology used to establish interest rates. In 2001, the court found that some lump sum distributions were improperly calculated