AK Steel, based in West Chester outside Cincinnati, has settled a lawsuit brought by retirees after the company announced it would cut some retirees’ health benefits and begin charging premiums for others.
The suit was brought by workers who retired before 2006 from an AK Steel plant in western Pennsylvania. The workers claimed the changes violated various collective bargaining agreements that promised the company would provide health benefits throughout their retirement.
Under the settlement, AK Steel will spend $87.6 million to provide retiree benefits through 2014 and $91 million to provide benefits after that.
In a statement, the steelmaker called the settlement fair for both sides.