Casey’s General Stores $5.1M Settlement for ERISA Tobacco Surcharge Discrimination
The Casey’s General Stores $5.1M Settlement for ERISA Tobacco Surcharge Discrimination settlement offers $5.10M in total to eligible claimants who must be a current or former employee who participated in the casey’s general stores employee health care benefit plan. The filing deadline has not yet been announced. Proof of purchase is not required.
Deadline: No deadline specified
Total amount allocated for all claims
Estimated amount per eligible claim
No proof of purchase needed — anyone eligible can file a claim
No claim form is required. The settlement administrator will use Casey’s company records to identify eligible class members and calculate each person’s payment based on the individual tobacco surcharge amounts. Class members do not need to provide additional documentation. If a mailing address has changed, the class member should contact the settlement administrator to update information.
Settlement Summary
Casey’s General Stores agreed to a $5.1 million class action settlement for employees who participated in its health care benefit plan from January 1, 2019 through December 31, 2025 and paid a tobacco surcharge. The dispute centers on a common approach in employer-sponsored health plans: charging higher premiums or additional fees to smokers. The plaintiffs alleged that Casey’s violated the Employee Retirement Income Security Act of 1974 (ERISA) by imposing that surcharge without offering a “reasonable alternative” standard—such as an approved pathway to qualify for the lower rate—required under federal health plan rules that regulate how wellness programs may vary cost-sharing based on health-related behavior. The lawsuit was filed to challenge whether Casey’s tobacco surcharge program complied with ERISA and related regulations designed to prevent health-plan discrimination that effectively penalizes employees unless they have meaningful options to meet the program criteria. Its significance lies in the direct, automatic relief it provides: eligible employees (and former employees) who paid the surcharge in the qualifying period may receive a cash payment calculated using their individual surcharge payments, with no claim form required. The settlement also reflects broader scrutiny of employer wellness programs under federal law—particularly rules tied to the Affordable Care Act and Department of Labor guidance—requiring that wellness incentives be structured so employees can avoid higher costs without being singled out unfairly, which is consistent with similar cases where plaintiffs challenge “tobacco” or wellness surcharges for lacking compliant alternative standards.
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Eligibility Requirements
- Must be a current or former employee who participated in the Casey’s General Stores employee health care benefit plan
- Participation must have occurred between Jan. 1, 2019 and Dec. 31, 2025
- Must have paid a tobacco surcharge in connection with participation in the health plan during the qualifying period
- Must reside in the United States
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Important Notice About Filing Claims
Submitting false information in a settlement claim is considered perjury and will result in your claim being rejected. Fraudulent claims harm legitimate class members and may result in legal consequences.
If you are unsure about your eligibility for this settlement, please visit the official settlement administrator’s website using the link provided above. Review the eligibility criteria carefully before submitting a claim.
Class Action Champion is an independent information resource and is not affiliated with any settlement administrator, law firm, or court. We provide settlement information as a service to help connect eligible class members with legitimate settlements.