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Court approves severance pay settlement for former Shopko employees

(WNDU)
Published: Oct. 16, 2020 at 10:10 AM CDT
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NEBRASKA, Wis. (WBAY) - A $3 million settlement agreement has been approved in a class-action suit filed on behalf of thousands of former Shopko employees.

On Oct. 15, the United States Bankruptcy Court for the District of Nebraska approved a $3,018,434.78 settlement to be payed by Shopko.

In May 2019, former employees filed an objection to Shopko’s company reorganization plan, alleging they were not paid severance after Shopko filed for bankruptcy.

An agreement was later reached. The settlement involves 3,969 people.

“Shopko denies that it owes any severance pay. Nevertheless, Shopko has reached an agreement with the Class Representatives to settle the asserted claims for the entire class of similarly situated former employees,” reads the class action settlement announcement.

Former employees who are part of the settlement will receive the amount of severance listed in a memo released last spring. Taxes will be taken out of that amount.

Checks will be mailed within 100 calendar days.

If the checks are not cashed within 180 days after issuance or returned as void, the funds will go to Brown County United Way and Feeding America Eastern Wisconsin.

If you have questions about the settlement, visit https://www.shopkosettlement.com/ or call 1-88-442-8688.

Green Bay-based Shopko closed all of its stores in June of 2019.

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