Mack Trucks, Volvo Settle Benefits Case Brought by Retirees for $525M
Posted May 17, 2011 3:24 PM CDT
By Stephanie Francis Ward
Mack Trucks and its parent company, Volvo, agreed to pay $525 million to retired employees who challenged the company’s proposed reductions to lifetime health benefits in an Eastern District of Pennsylvania class action lawsuit.
According to the Legal Intelligencer, Senior U.S. District Judge R. Barclay Surrick gave preliminary approval of the settlement today. The class is comprised of more than 9,300 retired employees who filed the action after Mack Trucks sought a court ruling against the United Auto Workers Union that lifetime benefits of its retirees were not vested and could be modified or eliminated.