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Current and former employees who participated in the Navistar health plan, now known as the International Motors health plan, between Jan. 1, 2016, and Dec. 31, 2025, and paid a tobacco surcharge may be eligible to receive a cash payment from a class action settlement.
International Motors LLC agreed to pay $150,000 to settle a class action lawsuit alleging violations related to its wellness program. The plaintiffs claimed the company’s health plan discriminated against employees by failing to provide a reasonable alternative standard for its tobacco surcharge policy in violation of the Employee Retirement Income Security Act of 1974.
Who is eligible to receive a payout?
Class members must meet the following criteria:
- They reside in the United States and participated in the Navistar health plan, now called the International Motors health plan, any time between Jan. 1, 2016, and Dec. 31, 2025.
- They paid a tobacco surcharge in connection with their participation in the health plan during the qualifying period.
How much can class members get?
Pro rata cash payment: Eligible class members will receive a pro rata cash payment from the net settlement fund. The settlement administrator will determine the final payment amount by the amount of tobacco surcharges class members paid during the class period.
No claim form required
Class members do not need to submit a claim form to receive their payment. Class members can submit a payment election form online to select a payment method using the ID and confirmation code from their settlement notice.
The payment election deadline is Aug. 13, 2026.
Payout options
- Paper check mailed to the address on file
- Electronic payment (only if the claimant submits a payment election form)
Settlement fund breakdown
The $150,000 settlement fund will include:
- Settlement administration costs: To be determined
- Independent fiduciary fees: Up to $25,000
- Attorneys' fees and expenses: Up to $49,950
- Case contribution award to class representative: Up to $5,000
- Payments to eligible class members: Remaining settlement funds
Important dates
- Deadline to select payment method: Aug. 13, 2026
- Fairness hearing: Aug. 27, 2026
When is the International Motors smoker surcharge settlement payout date?
The settlement administrator will issue payments to eligible class members after the court grants final approval of the settlement.
Why did this class action settlement happen?
The class action lawsuit alleged International Motors LLC (formerly Navistar Inc.) violated ERISA by administering a wellness program that discriminated against employees because it failed to provide a reasonable alternative standard for the tobacco surcharge, which is required by law.
International Motors denied any wrongdoing but agreed to settle to avoid the cost and uncertainty of further litigation.
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