American Cast Iron Pipe settles discrimination lawsuit for $5 million
Under the terms of the agreement, approximately 346 men will share in the monetary compensation for the loss of medical and dental insurance coverage for their children because of a requirement that children of employees and pensioners live with them full time.
ACIPCO will pay a total of $5 million to the plaintiffs, the plaintiffs' class and their attorneys, for fees and costs.
The plaintiffs filed the lawsuit in 1986 alleging sex discrimination. The suit was later amended to assert that a class of African-Americans and males in general were intentionally discriminated against on the basis of race and sex by being subjected to disparate treatment in violation of Title VII of the Civil Rights Act of 1964.
The plaintiffs' back pay claims span from May 1981 to May 1994, when ACIPCO eliminated the exclusionary policy based upon a change in the law. In addition, the plaintiffs' class included claims of compensatory damages under the Civil Rights Act of 1991 from November 21, 1991, forward. The EEOC subsequently intervened in the suit against ACIPCO.
According to the settlement, each class member will be reimbursed twice the amount of his qualified out-of-pocket medical, dental, and insurance expenses incurred on behalf of his natural or adopted children as a result of his children's exclusion from the ACIPCO Medical and Dental Benefits Plan because of the residency requirement.
Each qualified class member will also receive $34.15 per child for each eligible month that each child was denied coverage.
A trial was held in the case from Dec. 11 to 21, 1995, with the jury returning a verdict in favor of the plaintiffs on their claims of intentional disparate treatment based on Title VII race and sex discrimination prohibitions. Since the time of the trial, the parties have been engaged in extensive litigation and briefings to determine the amounts of back pay, interest, and compensatory damages to be awarded to each class member.
In April 2000, the parties reached a tentative settlement agreement in a mediation conference and the court gave final approval to the settlement in December.
"The company is pleased that this controversy about its healthcare policy is finally resolved," said Van Richey, president and CEO of ACIPCO. The lawsuit, which was filed on behalf of a certain class of male employees 14 years ago, has been settled on grounds that are reasonable for all parties."
ACIPCO manufactures a diversified product line for the waterworks, capital and energy industries. It is based in Birmingham, AL.
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Source: EEOC