Lighting Company Inks $395,000 Deal Over 401(k) Plan, Smoker Fee

Automotive lighting systems supplier North American Lighting Inc. agreed to pay $395,000 to settle litigation over its use of 401(k) forfeitures and the tobacco penalty in its employees’ health plan.

The proposed deal, announced Friday in the US District Court for the Central District of Illinois, represents about 10% of the case’s total estimated losses and is expected to cover about 6,000 people who either participated in the company’s health plan or paid its tobacco penalty since April 2018.

The bulk of the settlement amount—$355,000—will go toward the tobacco claims, with the rest earmarked for 401(k) participants.

The lawsuit ...