A decade-long dispute over retirement benefits at NCR Corp. has reached a major turning point. A Georgia federal judge on Wednesday approved a $48 million settlement and awarded nearly $16 million in attorney fees, bringing an end to a class action accusing the former software company of breaking promises to pay retired executives lifetime annuities.

U.S. District Judge Amy Totenberg approved the former executives’ motions for final settlement approval and for attorney fees and costs in their Employee Retirement Income Security Act lawsuit against the administrator of NCR’s retirement plans.

The judge found that the $15.76 million attorney-fee award — roughly one-third of the settlement — aligned with awards considered reasonable in the Eleventh Circuit. She also deemed about $378,000 in litigation-cost reimbursement reasonable.

Amy Totenberg $16M Deal Delivers Substantial Recovery

Judge Totenberg said the $46.3 million settlement fund is expected to provide an average of about $252,000 to each of the 189 class members. That figure is close to the maximum recoverable amount estimated by class counsel.

According to Wednesday’s order, no class member objected to the agreement. About 90% of class members or their successors have already submitted, or are preparing to submit, the verification documents needed to receive their payments.

The judge emphasized that continuing the litigation would have exposed the retirees to more delays and uncertainty.

“Litigating the remaining disputes likely would have required evidentiary hearings involving actuarial calculations and expert testimony, as well as potential further appeals, and would have carried a risk of an unfavorable outcome,” Totenberg wrote. “The settlement eliminates those delays and risks and secures guaranteed, substantial payments for class members.”

The settlement class covers former participants in the NCR plans at issue, along with their spouses and beneficiaries, who received or were entitled to receive lump-sum payments when the company terminated the plans.

Lawsuit Accused NCR of Cutting Lifetime Retirement Promises

The lawsuit, filed in November 2015, alleged that NCR sponsored retirement plans promising former executives monthly or biweekly payments for the rest of their lives after retirement.

According to the plaintiffs, NCR established trusts controlled by an independent trustee, but later terminated the nonqualified plans, stopped annuity payments and issued one-time lump sums that fell far short of what participants expected.

The complaint brought several claims against NCR, its compensation and human resources committee, its chief human resources officer and the plan administrator, including breach of contract. The former executives argued that NCR’s board compensation and human resources committee served as administrator for all of the company’s retirement plans.

NCR split into two companies in October 2023. NCR Voyix took over digital commerce and retail technologies and became NCR Corp.’s legal successor, while NCR Atleos assumed the company’s ATM technology business.

NCR Administrator Disputed Claims Before Appeals Court Ruling

In a January 2022 response, the plan administrator denied that participants had received less than the full value of benefits they were owed. It argued that, when the plans were terminated, participants and beneficiaries received lump-sum payments equal to the present value of their future benefits.

The case took a pivotal turn in 2024, when Judge Totenberg granted summary judgment to the plaintiffs on their breach-of-contract claim. NCR appealed.

In August 2025, the Eleventh Circuit affirmed the plaintiffs’ victory, finding that the lump-sum payments violated the plans’ terms because they adversely affected participants’ life annuities.

That ruling narrowed the remaining disputes on remand to the calculation of additional amounts owed, attorney fees and costs, and class notice. In April, the plaintiffs and the plan administrator told the court they had reached a settlement. Judge Totenberg gave the agreement preliminary approval in July.

Class Counsel Welcomes Settlement Outcome

Michael Klenov, who represents the class, said in a statement to Law360 that his team was “very gratified with the excellent result achieved for the settlement class.”

“We hope that the substantial damages recovery delivered to class members through the settlement will help to put the events that led to the litigation behind them,” Klenov said.

Representatives for NCR and the plan administrator did not immediately respond to requests for comment Wednesday.

The class is represented by David G.H. Brackett of Bondurant Mixson & Elmore LLP, and Michael E. Klenov and Garrett R. Broshuis of Korein Tillery LLC.

The plan administrator is represented by Paul W. Hughes and Sarah P. Hogarth of McDermott Will & Schulte LLP, and Jeremy U. Littlefield and Rachel F. Gage of Robbins Alloy Belinfante Littlefield LLC.