Disney Settles Class-Action Benefits Suit

Walt Disney Co. agreed to settle a class-action lawsuit filed by current and former employees over changes in retirement benefits. The settlement was announced the same day the suit was filed in U.S. District Court in Los Angeles. The settlement, which is expected to be approved by the court, would affect 4,000 active and retired employees of Disney, most of whom live in California and Florida. Disney changed retirement health benefits in 1994 and 1995, curtailing coverage for employees ages 62 to 65 and charging a premium of up to $1,000 or more per year for enhanced coverage. Those covered by the settlement would receive payments and refunds as compensation. Attorney William T. Payne, who represented the plaintiffs, said the settlement does not affect employees who are covered by unions or who work for Disney units. In a statement, Disney said it believed it had acted properly in implementing the changes but proposed the settlement “in recognition of the loyalty and long service of its retirees.”