A class action lawsuit filed seven years ago, known as the San Allen case, has reached a settlement agreement. The lawsuit accused the Ohio Bureau of Workers’ Compensation of knowingly overcharging non-group rated employers for insurance premiums to make up for the discounts offered to group rated employers.
Judge Richard McMonagle, Cuyahoga County Common Pleas, ruled in 2013 that the damage to the approximate 230,000 businesses over the 2001 – 2008 period totaled $859 million. The judge later dropped the damage amount to $650 million and it was settled between BWC and the plaintiff for $420 million Wednesday night. Judge McMonagle will still need to approve the settlement.
A third-party administrator will process the claims submitted by eligible class members of the lawsuit. The cost of administering the fund created to process the claims and the attorney fees for the winning side will be paid from the $420 million settlement.
Once the court approves the settlement, employers will be instructed on how to submit claims which must be postmarked no later than September 22, 2014.