This page provides the answers to class members’ most frequently asked questions.
The information provided is in summary form and is not intended as a complete explanation of your rights. For full and complete information, you are directed to review carefully the Notice of Class Action Settlement.
A lawsuit was filed in the United States District Court for the Northern District of Illinois (the “Court”) against UGN, Inc. The lawsuit alleges that Defendant violated the Employee Retirement Income Security Act (“ERISA”) by failing to provide a reasonable alternative standard related to paying the tobacco surcharge and/or a required notice related to the availability of a reasonable alternative standard. Plaintiff also makes a claim of breach of fiduciary duty. This is just a summary of the allegations in the lawsuit.
Defendant denies all allegations in the lawsuit and contends that its tobacco surcharge, smoking cessation program, and required disclosures were adequate and lawful. A tobacco surcharge for a medical premium is permissible when it can be avoided by participating in a reasonable alternative standard. Plaintiff claims that UGN did not provide a reasonable alternative standard and/or did not make adequate disclosures. Defendant has asserted, and would assert should the litigation continue, a number of defenses to Plaintiff’s claims, including related to applicable statutes of limitations, administrative remedies, and the availability of reasonable alternate standards.
The Parties have agreed to the Settlement after extensive negotiations. By agreeing to the Settlement, the Parties avoid the costs and risks of further litigation, and Plaintiff and the other Settlement Class Members will receive a Settlement payment. Counsel for the Settlement Class (“Class Counsel”) have conducted a review of the evidence in the case and the potential risks and benefits of continued litigation and believe that the Settlement is in the best interest of the Settlement Class. The Court has not made any finding that Defendant has done anything wrong or violated any law or regulation.
Plaintiff and Defendant have agreed to a settlement that involves monetary payments to Settlement Class Members. These and other terms of the Settlement are set forth in the Class Action Settlement Agreement and Release of Claims (“Settlement Agreement”).
As part of the Settlement, Defendant has agreed to make a one-time payment of $299,000 (the “Settlement Amount”). After deduction from the Settlement Amount for any amounts that the Court approves for settlement-related expenses (including “Class Representative Service Award” to Plaintiffs, “Attorneys’ Fees and Costs” to Class Counsel, certain “Administrative Costs,” and “Taxes” and “Tax-Related Costs” (all as defined in the Settlement Agreement)), the remainder of the Settlement Amount (known as the “Distributable Settlement Amount”) will be distributed to Settlement Class Members. Monies will be distributed in accordance with the the Settlement Agreement.
Class Members are not required to do anything to receive a settlement payment. If the Court grants final approval of the settlement, settlement checks will be mailed automatically to eligible class members.
The Settlement does not allow any Settlement Class Members to exclude themselves from the Settlement or decide not to be a part of the Settlement.
Before the Final Approval Hearing, Settlement Class Members will have the opportunity to object to approval of the Settlement or the requested Attorneys’ Fees and Costs and Class Representative’s Service Award. To object, you must send your objection to the Court, Class Counsel, and Defendant’s Counsel. See Section 13 of your Notice for complete instructions.