Whataburger Ex-Worker’s Promise Not to Sue Dooms 401(k) Lawsuit

Whataburger Restaurants LLC scored a court order dismissing litigation over its retirement plan investment options, because the former employee who filed suit signed a separation agreement that included a promise not to sue.

The worker’s separation agreement, which provided him with $26,000 and required him to release claims against the fast food chain, contains a “clear and unambiguous” promise not to sue, Judge Xavier Rodriguez said. This means plaintiff Manuel Esquivel lacks standing to challenge Whataburger’s 401(k) investment options, Rodriguez said, dismissing the proposed class action.

Rodriguez’s order, docketed Tuesday in the US District Court for the Western District ...