A federal court in Atlanta granted preliminary approval to the settlement of a class action lawsuit against Beazer Homes USA and some of its directors and officers that alleged they breached their fiduciary duties by continuing to allow investment of a 401(k) plan's assets in the Beazer Stock Fund from July 2005 to May 2008 .
The deal provides for a payment of $5.5 million to settle all claims and goes to members of the class whose accounts suffered alleged losses as a result of investing in the fund.
The plaintiffs said Beazer Homes stock was an imprudent investment due to mismanagement and improper business practices . The defendants denied the allegations.
The court will hold a hearing on November 15 to decide whether to approve the settlement.
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