Dignity Health Judge Blesses $100M ERISA Deal On Third Try

By Hannah Albarazi (October 19, 2021, 9:37 PM EDT) -- A California federal judge on Tuesday granted preliminary approval to a class action settlement he had twice rejected as defective, greenlighting a deal that would require Dignity Health to pay over $100 million to workers who claim the health system underfunded its pension plan by $1.8 billion via erroneous use of ERISA's church-plan exemption.

Nearly nine years after beneficiaries sued Dignity Health claiming it misused an Employee Retirement Income Security Act exemption intended for churches and their affiliates, leading to significant underfunding of its pension plan, U.S. District Judge Jon S. Tigar ruled Tuesday that the court's previous concerns regarding collusion had been...

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