VIDEO: Judge Approves $4.5 Million Settlement on KiOR Plant

JACKSON, Miss. (WCBI)- A federal judge has approved a 4 point 5 million dollar settlement for private shareholders of failed biofuel maker KiOR.

U-S District Judge Lee Rosenthal issued the order Monday in Houston approving the settlement, intended to partially compensate 23,000 shareholders for money they lost because of decreases in KiOR’s stock price.

The former KiOR CEO, lead investor, and the former Chief Financial Officer are to pay the money under the settlement.

Lawyers are to receive $1.5 million of the 4.5 million, plus expenses.

Mississippi Attorney General Jim Hood is also suing the CEO and lead investor in state court.

Hood is demanding repayment of $77 million plus interest.

Mississippi loaned $75 million to KiOR, which built a biofuel plant in Columbus.

The plant was supposed to convert wood chips into a synthetic crude oil using a special chemical at high temperature and pressure.

The plant made some biocrude in 2012 and 2013, but not nearly as much as it was designed for.