The Wall Street Journal reported that Hostess Brands said it used wages that were supposed to help fund employee pensions for the company’s operations as it sank toward bankruptcy.
The Journal said it isn’t clear how many of the company’s workers were affected by the move or how much money never wound up in their pension plans as promised.
The Journal quotes James P. Baker, a partner at Baker & McKenzie who specializes in employee benefits, as saying, “It’s what lawyers call betrayal without remedy.” Baker added, “It’s sad, but that stuff does happen, unfortunately.”
To read the full Wall Street Journal story, click here.
Previously on abfjournal.com: