Attorneys’ Fees Doom Dignity Health’s $100 Million ERISA Deal

Dignity Health’s $100 million class settlement with workers covered by its pension plan won’t get court approval until the parties rethink how the workers’ attorneys are paid, a federal judge in the Northern District of California ruled.

The deal is flawed because it contains a “kicker” clause allowing Dignity to keep any difference between the $6.15 million in attorneys’ fees authorized by the settlement and the amount of fees actually awarded by the court, Judge Jon S. Tigar said.

“Although the fact is not explicitly stated in the Settlement, if the Court awards less than $6.15 million in fees, Defendants ...