West Chester Resident, Former Wawa Employees Seek $25 Million Settlement in Class-Action Lawsuit

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Image via Francis Hilario, Philadelphia Business Journal.

More than 2,000 former Wawa employees are asking a federal judge to approve a $25 million settlement in a class-action lawsuit that claims the convenience store chain forced them to sell their Wawa stock back to the company at a below-market price, writes Sam Wood for The Philadelphia Inquirer.

Wawa is a privately held company and its workers participate in an employee stock ownership plan (ESOP) to save for retirement. The ESOP’s stock holdings are valued at more than $1 billion, roughly 40 percent of the company.

West Chester resident Greg Pfeifer was hired as a Wawa clerk in 1992 and rose through the ranks to work at the corporate headquarters. He left the company in 2009.

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Pfeifer filed the federal class-action suit in 2015. He claims Wawa forced him to sell his stock at $6,940 a share, several hundred dollars below the fair-market price.

The suit alleges the company promised employees they could hold their stock after leaving Wawa until they retired. About 2,300 former employees who were vested in the program and had at least $5,000 in the ESOP qualify as members of the suit.

Read more about Wawa in The Philadelphia Inquirer by clicking here.

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