Duke University has agreed to a $2.35 million settlement in a proposed class action accusing the school of shortchanging retirees by relying on decades-old mortality data to calculate pension benefits, according to a North Carolina federal court filing.
The case, led by retiree Joy Franklin, alleged Duke’s reliance on outdated assumptions deprived former employees of millions. Franklin urged the court Monday to certify a settlement class and approve the agreement, arguing that a guaranteed payout outweighed the uncertainty of continued litigation.
Arbitration Fight Nearly Changed Course
The settlement arrived just weeks before the Fourth Circuit was scheduled to hear Duke’s appeal to push the case into arbitration. Judge Catherine C. Eagles had previously denied the university’s arbitration bid, ruling that Franklin was never informed that arbitration clauses were added during a 2021 amendment to the plan.
Franklin told the court that the early legal battle over arbitration posed serious risks and made compromise the most pragmatic path forward.
