Sued A&P execs near deal

Aug. 20--A federal judge in Newark has given preliminary approval to a $9 million settlement of a class-action lawsuit that accused former executives of the A&P supermarket chain of misleading investors about the financial health of the company before it filed for bankruptcy in December 2010.

The lawsuit was filed in 2011 against Christian Haub, the former chairman of the board of A&P's parent company, the Montvale-based Great Atlantic & Pacific Tea Co., and five other executives, including former CEO Sam Martin. The claims against Martin and another former chief executive, Ron Marshall, and Yucaipa Cos., which bought A&P out of bankruptcy, were later dismissed.

U.S. Magistrate Judge Martin Falk issued a preliminary approval of the settlement last week and scheduled a hearing for Dec. 18.

Shareholders will be notified of the settlement and have until Dec. 2 to submit claims. Objections to the settlement must be filed by Nov. 25.

An agreement including the $9 million amount has essentially been in place since late 2013, after the parties met with a mediator.

The suit was brought on behalf of A&P shareholders who purchased the company's stock between July 2009 and December 2010. They included the city of New Haven employee pension fund and the pension trust funds of Plumbers and Pipefitters Locals 502 in Kentucky and 633 in Illinois. The suit claimed that Haub and other A&P executives withheld information that would have indicated the company was headed for bankruptcy.

When the class-action suit was filed, legal experts said the plaintiffs and their attorneys most likely were going after insurance policies that covered lawsuits and claims against A&P executives. Meanwhile, A&P issued a statement saying that although it was not named as a defendant, it believed the suit was without merit.

A&P did not respond to a request for comment Monday. Attorneys for the plaintiffs also did not respond.

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