At&t settles lawsuit over altered pension payments to 300,000 employees

at&t has agreed to a $149.1 million settlement to resolve a class-action lawsuit brought by over 300,000 current and former employees alleging the telecommunications giant shortchanged their pension payments due to outdated mortality data.

Married workers unfairly denied benefits

According to the lawsuit, filed in October 2020, AT&T failed to make the actuarial equivalent pension payments to married workers, instead using 40-year-old mortality data to compute benefits. This resulted in married employees receiving less money compared to their single counterparts.

Under the terms of the settlement, retired employees will receive an additional $113.5 million, while current employees will get $35.6 million. The plaintiffs' lawyers are expected to request $35 million in legal fees and costs, which would leave each eligible class member with a potential payout of up to $497.

AT&T denied any wrongdoing but opted to settle, citing the avoidance of prolonged litigation and the distraction it would cause. The company maintained its commitment to following the law in administering its pension plan.

The settlement still requires judicial approval, after which a notice will be sent to class members and a final hearing scheduled. While the $149 million sum is a significant expense for AT&T, it pales in comparison to the company's overall financial resources and recent stock performance.