FreightCar America Announces Stay of Preliminary Injunction in Pension Case

CHICAGO — The U.S. Court of Appeals for the Third Circuit has stayed the preliminary injunction issued by a lower court in an ongoing lawsuit concerning the FreightCar America Inc.’s pension obligations at its Johnstown, Pa., manufacturing facility, the company said.

The preliminary injunction had directed the Company to reinstate certain laid-off employees for pension purposes pending further proceedings in the lawsuit. The order of the Court of Appeals grants a stay of the preliminary injunction and directs the Company to take no action during the pendency of its appeal of the injunction, including closing the Johnstown facility, which would preclude the plaintiffs from qualifying for the pension benefits at issue in the litigation.

We welcome this decision by the U.S. Court of Appeals. The layoffs at our Johnstown plant during 2007 resulted from a downturn in railcar demand,” Tom McCarthy, the Companys Senior Vice President, Human Resources, said. “Our actions were appropriate and we will continue to defend them vigorously as this litigation proceeds.

FreightCar America is closing its Johnstown, Pa., manufacturing facility that employs about 390 employees.

The closure does not involve a closure of the company’s Johnstown administrative offices. Officials said the closure is in line with FreightCar’s strategy of optimizing production at its low-cost manufacturing facilities and continuing its focus on cost control.

— Business Wire