Lawyers who represented Hilton Hotel employees in a class-actionlawsuit over their pension plan are entitled to $21.5 million infees, a U.S. District Court judge ruled.
The employees last year won a $140 million class action lawsuitagainst Hilton Corp. and its retirement savings plan overallegations the company improperly credited service time in aprocess known as backloading. The Employee Retirement Income Security Act containsregulations to prevent abusive forms of backloading. The practicecauses plan participants to accrue benefits slowly in their firstyears of employment.
Judge Colleen Kollar-Kotelly, of the U.S. District Court forD.C., ruled last week that the employees’ attorneys, led by StephenBruce of Stephen R. Bruce Law Offices of Washington, D.C., wereentitled to 15 percent of the judgment against Hilton. The judgealso awarded the attorneys $603,000 in expenses. All of the moneywill be paid out of the fund established to pay as many as 23,000eligible Hilton employees.
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