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BWC Agrees to Settle San Allen Class Action Lawsuit
COLUMBUS, Ohio -- The Ohio Bureau of Workers’ Compensation reports it has reached an agreement in principle to settle the San Allen class-action lawsuit filed in 2007 again the state over BWC pricing policies in place from 2001 to 2008.
The settlement includes BWC creating a $420 million fund to pay for claims to employers participating in the lawsuit, their attorney fees, court costs and the costs of administering the fund.
The agreement in principle was announced Wednesday.
If the court gives its preliminary approval to the settlement agreement, class members will be notified with instructions for submitting claims, BWC said. A third-party claims administrator will begin processing claims in the next few months. Any unclaimed funds will be returned to BWC’s State Insurance Fund to pay claims to injured workers.
The San Allen Inc. class action lawsuit was filed in December 2007 in Cuyahoga County Court of Common Pleas. In March 2013 Judge Richard McMonagle awarded the plaintiffs $859.5 million. BWC appealed the decision to 8th District Court of Appeals, which essentially reduced the award to $651 million. In June of this year, BWC appealed to the Supreme Court of Ohio.
In a prepared statement, Steve Buehrer, BWC administrator/CEO, noted, “The policies that were at issue in this litigation in 2007 are not the same ones in place today, and we’re pleased that we have reached a settlement so we can move forward.”
Buehrer said BWC has improved “how premiums and discounts are calculated and its billing practices.
“Sound management of the trust fund made it possible to return $1 billion in rebates to customers last year, and major investments in workplace safety are helping employers do a better job of preventing injuries by keeping their workers safe,” he added. “All of these improvements are paying off for workers and businesses, and we’re going to keep building on them.”
SOURCE: Ohio Bureau of Workers Compensation.
Published by The Business Journal, Youngstown, Ohio.
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