Chicago-FreightCar America, Inc. (NASDAQ:RAIL) announced that the settlement in the Sowers/Hayden class action litigation has received court approval. The Company’s previously-announced global settlement relating to its Johnstown, Pennsylvania manufacturing facility was conditioned on court approval of this class action settlement. In a ruling released yesterday, the U.S. District Court in Johnstown held that the class action settlement is “fair, reasonable, adequate and in the best interest of the Class Members.”

The global settlement resolves all pending legal disputes relating to the Company’s Johnstown facility and its workforce. The Company had previously stated that the labor costs at the facility were significantly higher than at its other facilities. Responding to a downturn in the railcar industry, the Company attempted to agree with the local union on a reduction in labor costs, but those efforts were not successful. The Company accordingly announced in December 2007 a decision to close the Johnstown facility. Thomas P. McCarthy, the Company’s Senior Vice President, Human Resources, stated, “Our decision to close the Johnstown plant was not based on pension costs. That said, we need to put these disputes behind us. This settlement is in the best interests of our shareholders and we believe that its terms are fair to all parties.”

FreightCar America, Inc. manufactures railroad freight cars, with particular expertise in coal-carrying railcars. In addition to coal cars, FreightCar America designs and builds bulk commodity cars, flat cars, mill gondola cars, intermodal cars, coil steel cars and motor vehicle carriers. It is headquartered in Chicago, Illinois and has facilities in Danville, Illinois, Roanoke, Virginia and Johnstown, Pennsylvania. More information about FreightCar America is available on its website at http://www.freightcaramerica.com.