PricewaterhouseCoopers settlement resolves retiree benefits class action

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Update:

• PricewaterhouseCoopers agreed to pay $267 million to resolve claims the firm undervalued their lump-sum pension benefits. 
• Retirees who filed a class action lawsuit against PwC more than 16 years ago have asked a federal court in New York to approve the settlement agreement. 
• PwC was accused of violating the Employee Retirement Income Security Act by allegedly using incorrect interest rates in calculations that undervalued future retirement benefit amount projections.
• Each member of the proposed class will be given an average of nearly $11,000 in compensation under the proposed class action settlement. 
• Retirees were granted a partial summary judgment on some of their claims in September of last year. 

PricewaterhouseCoopers class action settlement overview:

• Who: PricewaterhouseCoopers reached a class action settlement with 17,000 retirees.
• Why: The retirees claimed in their class action lawsuit that PwC violated the Employee Retirement Income Security Act by cheating them out of retirement benefits. 
• Where: The class action lawsuit was filed in New York federal court.

(Aug. 10, 2022)

Accounting firm PricewaterhouseCoopers, or PwC, reached a settlement in a decade-plus-long class action lawsuit in which 17,000 retirees accused the firm of cheating them out of their lump sum retirement benefits.

The plaintiffs and class counsel sent a request to stay further proceedings to U.S. District Judge J. Paul Oetken, informing the judge of the agreement. No dollar amount has been given, but the parties asked for 45 days to complete the terms of the settlement. 

The PwC settlement is the culmination of a retiree benefits class action lawsuit filed in 2006 against PwC and its affiliates. The retirees claimed PwC violated the Employee Retirement Income Security Act (ERISA) by applying the wrote rate when calculating pension lump-sum benefits in the interest of saving the firm money. 

PwC settlement result of retirement benefits class action battles in district, appeals, high courts

In 2013, the district court ruled PwC’s pension calculations were unlawful. This ruling was reaffirmed by the 2nd Circuit after PwC appealed the decision. The retirees were then awarded class certification in 2014.

In 2017, the district court agreed with PwC that the retirees were not owed remedies under ERISA. However, in 2019, the retiree benefits class action lawsuit made its way to the 2nd Circuit again, where the U.S. Department of Labor filed an amicus brief to support the retirees’ case. Meanwhile, the U.S. Chamber of Commerce supported PwC.

The 2nd Circuit later reversed the lower court’s ruling, saying the retirees are allowed to seek remedies and enforcement of their plans. 

By 2021, the case landed in front of the U.S. Supreme Court, which denied PwC’s petition for certiorari (another review of the lawsuit). Also in 2021, PwC asked the district court to reconsider its June refusal to decertify the class and award a partial summary judgment win to the class.

What do you think about the retiree benefit class action and PwC settlement? Sound off in the comments below!

The class is represented by Eli Gottesdiener and Albert Huang of Gottesdiener Law Firm PLLC.

The PricewaterhouseCoopers ERISA class action settlement is Timothy D. Laurent, et al. v. PwC, Case No. 1:06-cv-02280, in the U.S. District Court for the Southern District of New York. 

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