ERISA Pension Class Actions

GLF is currently prosecuting a pension miscalculation case against Colgate-Palmolive on behalf of a class of 1,200 former employees who allege that they were twice underpaid the pensions they are owed:  first, when they elected lump sum payouts of their age-65 annuities, and, a second time, when Colgate calculated the supplemental annuities the company pledged to pay them in recognition of its underpayment of the initial lump sums.

The case began more than 10 years ago and, after two unsuccessful appeals by Colgate to the Second Circuit Court of Appeals, is back before the District Court for the Southern District of New York (the Honorable Lorna Schofield).

In March 2023, in response to Colgate’s first appeal, the Second Circuit affirmed an August 2020 District Court final order finding Colgate liable for having failed to correctly participants’ supplemental annuities.  See McCutcheon v. Colgate-Palmolive Co., 62 F.4th 674 (2d Cir.), cert. denied, 144 S. Ct. 99 (2023), affirming, 481 F. Supp. 3d 252 (S.D.N.Y. 2020).

On remand to the District Court, Colgate sought to reduce payments to the class members that the class contends it should have made decades ago by arguing that it had with two new arguments that would reduce “tens of millions of dollars” off of its liability to class members. 

In March 2024, Judge Schofield rejected Colgate’s arguments both procedurally and substantively.  Judge Schofield held Colgate’s new arguments are barred procedurally, both because they contradicted the final judgment and because they could have been, but were not, presented either to the District Court before its 2020 final judgment had issued or to the Second Circuit before it had affirmed that final judgment and returned its mandate. Judge Schofield thus found the arguments foreclosed by the law-of-the-case doctrine and its subsidiary mandate and waiver rules. But Judge Schofield also held the new arguments barred substantively because they were wrong on their merits.

Colgate appealed Judge Schofield’s ruling.  On April 4, 2025, the Second Circuit rejected Colgate’s appeal and affirmed the District Court.  The case was formally remanded to the District Court on April 28, 2025.

On June 2, 2025, after a lengthy mediation, the parties agreed to a settlement under which Colgate would pay $332 million in exchange for a release of all claims. 

On October 8, 2025, Judge Schofield granted preliminary approval to the settlement and authorized notice to the class.  She set January 12, 2025 as the final approval hearing date. 

Class members can find additional information regarding the proposed settlement at ColgatePensionClassAction.com.