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A former Rockwell Automation Inc. employee, Mark Berube, is seeking approval from a Wisconsin federal court for a $900,000 settlement that could bring an end to his proposed class action lawsuit. The lawsuit accuses the factory-equipment manufacturer of unfairly using outdated data in calculating pension benefits.

Rockwell Retiree Seeks $900K Deal : Settlement Motion Unveiled

In a compelling motion for settlement approval filed on Wednesday, Mark Berube presented the court with an agreement reached between himself and Rockwell Automation. The heart of the matter revolves around the company's use of mortality rate data from the 1980s to compute joint and survivor annuities (JSAs), benefits meant for company retirees that pass on to their spouses upon their demise.

"Time is of the essence," Berube emphasized, pointing out that in litigation, delays are a significant concern. This is especially critical in a case involving retirees in their 60s and 70s. He argued that such delays can cause substantial harm to class members already in retirement. In contrast, if this settlement gets the green light, the class will start receiving increased monthly pension payments immediately, rather than years down the line if the case were to go through a trial successfully.

Rockwell Retiree Seeks $900K Deal : The Wise Choice of Settlement

Mark Berube's legal theory has not been tested in any trial to date, and there are no appellate decisions directly addressing the same claims. Hence, Berube sees settling as a wise choice. The proposed settlement covers approximately 60% of the classwide damages, according to the motion.

Berube estimated that there are more than 200 members in the proposed class, including married plan participants and beneficiaries of two subplans who had the option to receive their benefits in the form of a single life annuity (SLA) but chose a JSA on or after December 2, 2014.

Under the terms of the settlement, attorneys representing Berube stand to receive $270,000 of the total deal, along with costs and expenses, as outlined in the filing.

Berube's Background and Legal Battle

Mark Berube worked for Rockwell for 15 years before leaving the company in 2005 at the age of 50. His legal battle began in December 2020 when he started receiving his pension benefits in October 2019. He filed a lawsuit against the company and its worker benefits committee, seeking to represent a class of Rockwell workers who opted to convert their SLAs to JSAs upon retirement. Berube alleged that Rockwell had not provided actuarially equivalent benefits to JSA holders, thus violating the Employee Retirement Income Security Act (ERISA).

In April, U.S. District Judge Lynn Adelman denied Berube's motion for class certification, citing the varied nature of the claims made by the retirees he aimed to represent.

Undeterred, Berube engaged in settlement negotiations with Rockwell, although they initially proved unsuccessful. However, in early September, he approached the court with a request to revise his proposed class, as documented in court filings. Before Judge Adelman could rule on this request, Berube surprised the court on September 15 by announcing a settlement in principle with Rockwell.

About Rockwell Automation Inc.

Based in Milwaukee, Rockwell Automation Inc. employs approximately 26,000 people. The company provides digital and automation solutions worldwide, serving a range of industries, including automotive, mining, marine, and publishing.

A representative from Rockwell declined to comment on the matter, and representatives of Berube did not immediately respond to requests for comment on Thursday.

Berube is represented by Robert A. Izard of Izard Kindall & Raabe LLP; Gregory Y. Porter, Mark G. Boyko, and Laura Babiak of Bailey & Glasser LLP; and Charles J. Crueger and Erin K. Dickinson of Crueger Dickinson LLC.

Rockwell Automation is represented by David R. Godofsky, Emily S. Costin, and R. Blake Crohan of Alston & Bird LLP and by Scott W. Hansen of Reinhart Boerner Van Deuren SC.