September 5, 2024
Casino Queen’s parent company agreed to settle a proposed class action by workers claiming it cost them tens of millions when their employee stock ownership plan bought $170 million of the company’s stock in an overinflated deal, according to an Illinois federal court filing Thursday.
U.S. District Judge David W. Dugan approved the parties’ joint request Tuesday that the case remain paused while the workers and CQ Holding Co. Inc.’s board of directors work out a final deal to be brought before the court. The parties said the agreement also aims to resolve an appeal pending before the Seventh Circuit filed by the casino, challenging the district court’s decision to keep the case out of arbitration.
The judge directed the parties to file a motion for preliminary approval by Nov. 12.
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The workers are represented by Michelle C. Yau and Ryan A. Wheeler of Cohen Milstein Sellers & Toll PLLC and by Shaun Martin of Stris & Maher LLP.