Calif. City Retirees Sue To Block Health Care Cuts

Law360, New York (July 12, 2012, 12:28 PM EDT) -- A putative class of retired Stockton, Calif., public workers filed suit Tuesday to block the bankrupt city’s request to cut health benefits, calling the proposal a flagrant contract violation with potentially grim consequences for Stockton’s elderly.

The suit comes on the heels of Stockton’s historic plunge into Chapter 9 protection June 28. The petition, prompted by a $26 million budget hole, made the city the largest ever in the country to file for bankruptcy. In efforts to slash costs and balance its budget, Stockton announced after...
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