Mack Trucks, Volvo to pay $525M to settle suit

Headline Legal News

Mack Trucks Inc. and its parent, AB Volvo, will pay $525 million to settle a class-action lawsuit filed by more than 9,300 retirees of the North Carolina truck maker after they challenged potential reductions to their lifetime health benefits.

The Legal Intelligencer reported Tuesday that Senior U.S. District Judge R. Barclay Surrick gave preliminary approval of the settlement. A hearing is Sept. 7 to decide if the settlement is fair and reasonable.

The suit was filed in Michigan after Mack sought a ruling that lifetime benefits of its retirees were not vested and could be modified or eliminated. Both cases were consolidated in the Eastern District of Pennsylvania.

Mack reached an agreement with the UAW in May of 2009 on a voluntary employees beneficiary association, or VEBA, that would have the union oversee retirees' health benefits. Mack and Volvo agreed to fund it with $525 million, paid in five annual installments.

Mack said it expects the final approval of the VEBA in September.

The company also reported that deliveries nearly doubled in April from a year earlier with 1,608 trucks delivered from the 810 it recorded in April 2010, an increase of 99 percent.

Related listings

  • Court says FOIA request cannot be used in lawsuit

    Court says FOIA request cannot be used in lawsuit

    Headline Legal News 05/17/2011

    The Supreme Court says a Freedom of Information Act request cannot be used to trigger a False Claims Act lawsuit. The court on Monday voted 5-3 to agree with arguments by Schindler Elevator Corp., which sought to get a lawsuit against it dismissed. D...

  • Phoenix realtor pleads guilty to mortgage fraud

    Phoenix realtor pleads guilty to mortgage fraud

    Headline Legal News 05/12/2011

    A Phoenix real estate agent has pleaded guilty in a mortgage fraud scheme that costs lenders almost $10 million. Federal prosecutors said 31-year-old Jason Thomas Williams pleaded guilty Monday to charges of conspiracy to commit wire fraud. It was un...

  • Courts nationwide hold hearings with video

    Courts nationwide hold hearings with video

    Headline Legal News 05/09/2011

    George Villanueva, charged with first-degree murder in the death of an NYPD officer, will not leave jail for months of pretrial hearings. Instead, he'll be beamed into the courtroom via video as lawyers discuss his case in front of the judge. Villanu...

Does a car or truck accident count as a work injury?

If an employee is injured in a car crash while on the job, they are eligible to receive workers’ compensation benefits. “On the job” injuries are not limited to accidents and injuries that happen inside the workplace, they may also include injuries suffered away from an employee’s place of work while performing a job-related task, such as making a delivery or traveling to a client meeting.

Regular commutes to and from work don’t usually count. If you get into an accident on your way in on a regular workday, it’s probably not considered a work injury for the purposes of workers’ compensation.

If you drive around as part of your job, an injury on the road or loading/unloading accident is likely a work injury. If you don’t typically drive around for work but are required to drive for the benefit of your employer, that would be a work injury in many cases. If you are out of town for work, pretty much any driving would count as work related. For traveling employees, any accidents or injuries that happen on a work trip, even while not technically working, can be considered a work injury. The reason is because you wouldn’t be in that town in the first place, had you not been on a work trip.

Workers’ compensation claims for truck drivers, traveling employees and work-related injuries that occur away from the job site can be challenging and complex. At Krol, Bongiorno & Given, we understand that many families depend on the income of an injured worker, and we are proud of our record protecting the injured and disabled. We have handled well over 30,000 claims for injured workers throughout the state of Illinois.

Business News