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Compliance March 5, 2002
H-P Restores Employee Rebate Program
May 3, 2002 (PLANSPONSOR.com) - Hewlett-Packard
(H-P) retirees will get rebates on H-P products they've
purchased and will continue to be eligible for those rebates
in the future, according to a lawsuit settlement in a
California court.
Reported by Fred Schneyer
Plaintiff Mark Leonard, a 23-year H-P employee, sued the giant computer maker in California Superior Court after H-P withdrew the program from retirees it classified as former Agilent Technologies workers. The program allowed H-P personnel to get back part of the purchase price for H-P products.
A California Superior Court judge approved making Leonard’s suit a class action and certified 3,810 H-P workers as members of the class.
According to a BNA report, the settlement calls for H-P to pay about $40,000 in rebates to retirees, $150,000 in attorney fees, and $10,000 in costs.
The settlement provides for HP to set aside $150,000 for past payments, which are equal to 10% of the list price on qualifying products and 5% of the list on competitors’ products.
A Superior Court judge has scheduled a May 23 hearing when he is expected to give final approval to the deal.
The case is Leonard v Hewlett-Packard Co.