Shareholders filed a class action lawsuit against the company for securities fraud. The class alleged former chief executive and former chief strategic officer looted the company by orchestrating lucrative pay packages for themselves and using the corporate aircraft for personal travels. Investors have been awarded a $32.5 million securities fraud settlement. (Apr-16-05)
A U.S District Federal Judge has approved the $32.5 million class action settlement against the electric utility company. Shareholders originally filed the securities fraud suit in 2003 for not being given details of the company's proposed merger with a New Mexico utility or being told about the plan to spin off its unregulated affiliates into a separate company called Westar Industries. (Sep-02-05) [THE STATE]
