Singing River Health System has agreed to pay $156 million to settle multiple lawsuits alleging the Pascagoula, Miss.-based health system failed to make annual required contributions into a retirement fund, according to a gulflive.com report.
The legal battle over the health system's failed pension plan began in 2014 after health system officials announced the pension plan would be frozen and eventually liquidated. One class-action lawsuit, filed by five current and former SRHS employees, alleged the health system breached its contract with pension plan members because alternatives existed to shore up the plan. SRHS retirees also sued the health system in federal court. The class-action complaint alleged SRHS, current and former members of its board of trustees and administrators breached their contracts with pension plan members and their fiduciary duties and committed fraud.
Under the agreement, SRHS will pay $149 million into the pension fund over the next 35 years. Jim Reeves, a lawyer who represents a group of the retirees in their litigation against SRHS, said the agreement ensures retirees will receive 100 percent of the pension payments owed, according to the report.
In addition to the pension fund payment, SRHS agreed to pay attorneys fees up to $6.45 million and $125,000 in legal expenses.
The agreement will settle the federal class-action lawsuits, as well as some state court cases that were filed concerning the pension plan.
Kelly Sessoms, a lawyer for SRHS, said the health system believes the settlement is "fair and reasonable for all concerned," according to the report.
The agreement has been submitted to U.S. Magistrate Louis Guirola Jr. for approval.
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