AT&T agrees $184.1 million pension settlement with employees in U.S. class action
The proposed agreement resolves claims that AT&T underpaid pension benefits to about 300,000 current and former employees through its treatment of married workers. The settlement, filed in San Francisco federal court, still requires judicial approval and includes both added benefits for workers and potential legal fees.
Highlights
- AT&T will pay $184.1 million to settle a class action alleging ERISA violations related to shortchanged pension payments for married employees.
- Under the settlement, $149.1 million will be allocated to increased pension benefits, with $113.5 million for retirees and $35.6 million for current employees.
- The class action, filed in October 2020, covers a broad group of current and former workers, and requires judicial approval before taking effect.
Pension dispute terms and court filing
As reported by Reuters, citing court papers filed in San Francisco federal court, AT&T agrees to pay $184.1 million to settle a proposed class action alleging the company shortchanged pension payments in violation of the Employee Retirement Income Security Act of 1974, or ERISA.The lawsuit says the Dallas-based telecommunications company failed to provide pension payments to married workers that were the actuarial equivalent of payments made to single workers. Employees argue AT&T relied on mortality data that were decades out of date, which caused married workers to receive less.
Under the preliminary settlement, employees would receive $149.1 million in additional pension benefits, including $113.5 million for retired employees and $35.6 million for current employees. Lawyers for the employees may seek up to $35 million to cover legal fees and costs.
Litigation background and employer response
The lawsuit began in October 2020 and now moves into the approval stage, with the proposed deal requiring a judge's sign-off before it can take effect. The case covers a large group of current and former workers, underscoring the scale of pension administration risks for major employers in the U.S.AT&T denies wrongdoing in agreeing to settle. In a statement, the company says it chose to resolve the case to avoid the expense and distraction of prolonged litigation and remains committed to following the law in administering its pension benefit plan.
Our earlier article on Zillow Group’s stock performance examined how the shares came under renewed pressure amid mounting legal and regulatory challenges tied to its agreement with Redfin. We noted that multiple securities class actions and an FTC antitrust complaint added to investor caution, reinforcing bearish technical signals despite the launch of Zillow Pro and a profitable quarter.
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