Lockheed's Orion spacecraft.

(Bloomberg) — Lockheed Martin Corp. agreed to settle a $1.3 billion lawsuit over claims the defense contractor shortchanged the 120,000 workers and retirees who participate in its pension plans as a trial was set to begin this week.

Workers accused the company of subjecting them to excessive fees and leaving those investing in its stock fund with returns that were worse than if they had bought shares on the open market. The settlement was disclosed yesterday by U.S. District Judge Michael Reagan in East St. Louis, Illinois, and still requires his approval.

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