Ex-Shelby Yarn workers settle lawsuit.

• Position: CHARLOTTE - Brief Article

Four years after Shelby Yarn shut down (cover story, September 2000), former employees have settled a lawsuit over medical-insurance payments and back pay. Former CEO Sidney Kosann will pay $200,000 and Shelby Yarn's former owner, San Mateo, Calif.-based Recovery Equity Investors, will pay $1.8 million of the $2.1 million settlement. Each of the 638 workers on its payroll when it closed Jan. 17, 2000, will receive about $1,468 before taxes. The suit claimed that Shelby Yarn closed without giving 60 days' notice, violating federal law, and that its self-insured health plan was unable to cover any unpaid medical claims. On...