Burlington Pays To Settle Esop Suit

Burlington Industries Inc., Morgan Stanley Group Inc. and NationsBank Inc. said they agreed to pay $8.8 million each to settle a suit filed over the funding of Burlington’s employee stock ownership plan.

The suit, filed by Janice Corneal and Daniel Atwood, alleged that Morgan Stanley officials and Burlington executives manipulated the textile maker’s ESOP to excessively profit, causing its value to drop by 74 percent, or $38 million, and its ownership of Burlington stock to fall to 3 percent from 49 percent.