In a recent development, a U.S. federal judge in Chicago recognized the validity of the class action lawsuit filed against CITGO Petroleum Corp, involving over 1,700 members and beneficiaries. This ruling arrives in the wake of the dismissal of the fuel company’s summary judgement motion. CITGO is being sued on allegations that it has underpaid pension plans by an estimated $31 million. According to Law.com, the case primarily accuses CITGO of violating the federal Employee Retirement Income Security Act (ERISA) by imposing a so-called “marriage penalty” on the joint and survivor annuity recipients of its pension plans.
U.S. District Judge Matthew F. Kennelly’s ruling gives the plaintiffs the go-ahead to proceed to trial against CITGO, laying down framework for the gas and energy giant to defend itself. One of the plaintiffs’ counsel, Michelle C. Yau, chair of Cohen Milstein’s ERISA practice, expressed satisfaction with the court’s decision. Yau, who represents more than 1,700 CITGO employees and pensioners in this ERISA case, stated, “We are very pleased the court granted class certification… This ruling and the court’s recent order denying summary judgment pave the way for the class claims to move forward to trial and affirm our confidence that our clients will prevail.”
With the class certification granted, plaintiffs now have the standing to bring their collective claims against CITGO to court, setting stage for a significant legal battle concerning pension underpayments in the corporate realm.