UGN Cleared for $299,000 Health Plan Tobacco Penalty Settlement

Aug. 13, 2025, 4:29 PM UTC

UGN Inc. finalized a $299,000 class settlement resolving litigation over the automobile part maker’s practice of charging tobacco-using workers an annual $1,152 penalty for health coverage.

The deal represents 36% of the workers’ estimated damages and is expected to benefit about 431 people who paid the tobacco surcharge in connection with UGN’s health plan between August 2018 and December 2024, according to court filings.

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