Mark D. DeBofsky was part of a team of attorneys that recently secured a $27.5 million ERISA class action settlement against United Airlines. The suit was brought to challenge United’s denial of promised voluntary separation benefits to a class of approximately 8,500 retired employees. A federal district court dismissed the case; however, the plaintiffs appealed, and three mediation sessions produced a resolution. Each class member will receive a share of the settlement and eight United Airlines flight passes.
In 2017, United Airlines offered an early-out policy with a clear commitment. If a better separation package became available within three years, employees who had already retired would qualify for the upgrade. Many employees left the company in reliance on that promise.
Between April 2020 and January 2021, United rolled out three successive voluntary separation packages. Each was more generous than the last. The most lucrative included $125,000 in retiree health account contributions, travel privileges through 2026, and continued base wage payments. United refused to extend any of these packages to employees who had left within the previous 36 months.
Twelve retirees filed a consolidated class action in November 2021. They brought ERISA claims in the U.S. District Court for the Northern District of Illinois. In May 2025, Judge John J. Tharp Jr. dismissed the case. He ruled the 2017 policy fell outside ERISA’s scope. The retirees appealed the dismissal to the Seventh Circuit.
How a Dismissed Case Became a $27.5 Million Recovery
Briefing at the Seventh Circuit was suspended in August 2025 to allow for mediation of the dispute with the Circuit Mediator. After three sessions, the parties reached an agreement to settle the dispute. The class of approximately 8,500 retirees who left between August 2017 and December 2020 will share $27.5 million. Each class member will also receive eight United Airlines flight passes.
The settlement between the class members and United reflects the value of mediation in an ERISA retirement benefits claim.
In addition to Mark DeBofsky, the class was represented by Susan L. Meter and Samantha L. Brener of Kantor & Kantor LLP, and Jeffrey Lewis of Keller Rohrback LLP. Jamie S. Franklin of the Civil Litigation Clinic at Chicago-Kent School of Law also served as co-counsel.
Did Your Employer Break a Promise About Your Retirement Benefits?
If you were denied separation or retirement benefits your employer committed to providing, DeBofsky Law can help. Contact us to speak with an attorney.