Former Employees of Dahl’s Foods Sued by Bankruptcy Trustee for Their Retirement Funds

by San Antonio Attorney

Grocery store chain Dahl’s Foods declared bankruptcy in 2014.  Currently, the bankruptcy trustee is filing a lawsuit against the board of directors who managed the retirement money of the retirees, as well as the retirees themselves.

Michael Collins, one of its former employees, said he believed that he would have a work for life at Dahl’s.  True enough, he was able to raise his family with his job at the company for the past 36 years.

But right now Collins has uncertainties about his future after he learned that he was being sued for his entire retirement fund, which is worth more than $330,000.

He was unable to sleep for many nights after finding out about the lawsuit.

The old employees have shares of company stock.  So if they retire they could redeem those shares for cash as their retirement savings.

The amount has reached to a fairly substantial sum for employees like Collins who have been with the company for decades.

The complaint alleges that for the past 6 years the board of directors overstated the worth of the stock by forecasting the company was generating profits than it really was; and for that reason, retirees got paid beyond the actual worth of their stock.

The members of the board of directors are facing an $18 million lawsuit.

Collins is now subject to what happened in those meetings of the boards of directors.

The employees of Dhal’s Foods have 35 days to answer the lawsuit, and the thought of having to repay even a percentage of his retirement savings is worrying him.

Collins is deeply bothered that they would lose everything that they worked for a long a time.

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