Up to 150,000 employees and retirees of former retailer Kmart have been awarded US$11.75m as part of a lawsuit settlement over the investment of pension funds, Associated Press reported.

Workers who took part in Kmart's pension scheme between 15 March 1999 and 6 March 2003 are said to have lost between $28m and 300m after officials wrongly invested money into Kmart's now worthless stock.

Kmart filed for bankruptcy in 2002 and became K-mart Holdings on its emergence the next year. The business then merged with retailer Sears, Roebuck last March and became part of Sears Holdings.