Westco Chemicals 401(k) Settlement Rejected Over Fairness
October 1, 2021
By Rachel Stone (September 30, 2021, 4:55 PM EDT) -- A California federal court refused to approve a $500,000 settlement agreement between Westco Chemicals Inc. and a proposed class of retirement plan beneficiaries over claims the company violated ERISA by mismanaging the plan, worrying the deal on the table under-compensates certain plaintiffs.
In Wednesday's order denying the workers' motion for class certification and rendering the parties' May settlement deal moot, U.S. District Judge Otis D. Wright II determined that an argument Westco raised in a summary judgment bid was relevant here, in that it cast doubt on whether the settlement was a good deal for plaintiffs whose claims weren't time-barred.
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