Convenience Chain Settles Worker Tobacco Suit for $5.1 Million

Casey’s General Stores Inc. signed a $5.1 million class settlement with workers challenging the Iowa-based convenience chain’s practice of charging extra fees to tobacco-using employees on its health-care plan.

The proposed deal is expected to provide cash payments to about 13,874 class members based on the amount of tobacco surcharges they paid in connection with the Casey’s health plan. The settlement amount represents about 26% of the plaintiffs’ estimated damages in the case, according to a Wednesday motion seeking preliminary approval from the US District Court for the Southern District of Iowa.

The settlement is one of the largest announced ...