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.

"The court...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS