Suit Against Disney Gets Class-Action OK

A lawsuit accusing Walt Disney Co. of reneging on promised benefits to retired studio and theme park workers has been certified as a class action, allowing 4,000 former and current employees to press their claims collectively in federal court. Attorneys for the retirees said the ruling was made Tuesday by U.S. District Judge Terry J. Hatter Jr. in Los Angeles. The suit alleges that Burbank-based Disney promised no-premium retirement health care to 20-year employees age 62 and older, then changed the age to 65 and began charging premiums for non-HMO coverage in the mid-1990s. A typical Los Angeles-area worker who opted out of a health maintenance organization wound up paying more than $1,000 a year for family coverage, said William T. Payne, a lawyer for the plaintiffs. He said it’s unclear what damages could total in the case. Disney says the changes, brought on by escalating medical costs, were allowed under its contracts with workers. Disney and the retired workers announced a settlement in 1997 that would have reduced premiums by 50% to 90%, but that deal collapsed, with retirees accusing Disney of secretly making additional charges. Last year, Hatter rejected the company’s attempts to enforce the settlement. “We’re disappointed that the judge has dissolved the agreement,” Disney spokesman Tom Deegan said, “but we’ll go forward to defend the case.”