A federal judge granted preliminary approval Aug. 10 of a $5.7 million settlement between Huntington, W.Va.-based Cabell Huntington Hospital and 211 retirees who accused the provider of reneging on healthcare benefit promises.
The class-action lawsuit alleged that the hospital violated the Employee Retirement Income Security Act by moving to terminate nonunion retirees' benefits despite promises that it would help fund their healthcare for life. The hospital allegedly told workers that they could retire at 62 and collect lifelong benefits if they retired as nonunion employees.
Both the hospital and the retirees asked the judge in July to approve the settlement. The hospital denies the retirees' claims, but agreed to the settlement, according to court records.
A final approval hearing is scheduled for Oct. 31 to consider whether the settlement is fair, reasonable and adequate, according to court records.