Ex-Teva Workers Can Seek Severance Benefits in State Court

More than a dozen former Teva Pharmaceuticals USA employees can sue the drugmaker for severance benefits in state court, after a federal judge in Pennsylvania ruled that the company’s severance program isn’t a benefit plan governed by the Employee Retirement Income Security Act.

Teva’s three severance policies “have a plethora of inconsistencies” and can’t be considered a unified benefit plan governed by ERISA, Judge Jeffrey L. Schmehl of the U.S. District Court for the Eastern District of Pennsylvania ruled. The former employees seek benefits under a non-ERISA contract and can therefore press their claims in state court, Schmehl said in ...