$4 Million ERISA Settlement

Martin & Bonnett Secures $4 Million ERISA Settlement

On December 4, 2017, the U.S. District Court for the Central District of California, Los Angeles, granted final approval to a settlement agreement resolving claims brought by a class of 28 retirees and former employees of Com Dev USA, a high-tech satellite engineering and manufacturing company.

The lawsuit sought retroactive and prospective payment of retirement benefits and alleged violations of the Employment Retirement Security Act (“ERISA”)—the federal law that governs certain types of pension plans.

The lawsuit claimed the retirees were short-changed when they chose optional benefits paid within 5, 10 or 15 years instead of monthly benefits for life and that in calculating their benefits, the plan unlawfully failed to include the value of the cost of living adjustments and failed to use the more favorable interest rate provided under the plan. The settlement was a victory for Plaintiffs who were not being paid the retirement benefits they were owed.

After engaging in months of formal and informal discovery, filing cross motions for summary judgment and class certification, and hiring actuarial experts, the parties reached a settlement agreement in late 2017. The settlement provides for a Gross Settlement Amount of $4,085,000 and includes provisions for two groups of class members who will receive average recoveries of approximately $156,349 and $11,802, respectively.

In approving the settlement, the Court stated that the attorneys from Martin & Bonnett had “skill in complex ERISA class action litigation,” and were “successful in convincing Defendants that Plaintiffs could prevail at trial, achieve and maintain class certification, ascertain damages, and take the case to trial.”

The case is Curtis Tom v. Com Dev USA, LLC et al, No. 16-cv-1363 which was brought in the United States District Court for the Central District of California.

At Martin & Bonnett, we have been on the forefront of ERISA class action litigation for decades. We handle cases throughout the United States and have been featured in the New York Times, Wall Street Journal, and numerous other publications. We routinely litigate against high-profile, Fortune 500 companies and have achieved tens of millions of dollars in settlements for our clients.