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Article: Merger doesn't eliminate retiree benefits: Court; Workers challenge move to cutoff health care coverage after bankruptcy disrupts previous arrangement.(NEWS)(LP Displays International Ltd.)
- Article from:
- Business Insurance
- Article date:
- September 7, 2009
- Author:
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Byline: JOANNE WOJCIK
Retirees of a former LG Philips Displays USA Inc. plant in Ohio have been given a second chance to pursue their two-year-old lawsuit seeking to restore their retiree health benefits, which were terminated in May 2006 after their former employer filed for bankruptcy.
In a 2-1 decision, a three-judge panel of the 6th U.S. Circuit Court of Appeals last week ruled the U.S. District Court had erred when it ruled that the company was released from its obligation to provide retiree health benefits after it merged with a Korean firm in 2001.
The appeals court also said the district court should have considered the benefit plan ...