Embarq Stiffed Workers, Class-Action Claims

KANSAS CITY, KAN. (CN) - Embarq Corp., a giant telecom created in 2006 as a spinoff of Sprint-Nextel's local carriers, illegally terminated health-care benefits, including medical and prescription drug coverage and life insurance, for all Medicare-eligible employees, a federal class-action complaint claims on behalf of its 20,000 employees and 14,000 retirees. Embarq then immediately told its shareholders that the terminations would save the company $40 million a year. See complaint.

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