UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF OHIO

WESTERN DIVISION AT DAYTON

CLIFFORD BAILEY, et al.,

Plaintiffs, Case No. 3:17-cv-332

vs.

VERSO CORPORATION, District Judge Michael J. Newman

Defendant.

______________________________________________________________________________

ORDER: (1) GRANTING FINAL APPROVAL TO THE CLASS SETTLEMENT UNDER 

FED. R. CIV. P. 23; (2) DISMISSING THIS CASE WITH PREJUDICE; (3) ORDERING 

THE CLERK TO ENTER JUDGMENT ACCORDINGLY; AND (4) TERMINATING 

THIS CASE ON THE DOCKET

______________________________________________________________________________

This case is before the Court for final settlement approval under Fed. R. Civ. P. 23. A 

fairness hearing was held on November 17, 2021. Doc. Nos. 70, 76, 81. Counsel for the class and 

Defendant appeared and participated. For the reasons provided by counsel on the record during 

the fairness hearing, and for those given below, the Court grants final approval to the settlement 

under Fed. R. Civ. P. 23.

I.

A. Life Insurance for Retirees and Death Benefits for Survivors

Plaintiffs are Clifford Bailey, James Spencer, and the United Steel, Paper and Forestry, 

Rubber, Manufacturing, Energy, Allied Industrial and Service Workers’ International Union, 

AFL-CIO-CIC (“USW”). Plaintiffs filed this action under the Labor Management Relations Act 

(“LMRA”), 29 U.S.C. § 185, and the Employee Retirement Income Security Act (“ERISA”), 29 

U.S.C. §§ 1132(a)(1)(B), (a)(3), (e), and (f), on behalf of themselves and as representatives of a 

proposed class, to recover collectively-bargained $4,000 life insurance coverage and death benefits 

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for retirees of Defendant Verso Corporation’s (“Verso”) now-closed Wickliffe, Kentucky paper 

mill (the “Wickliffe mill”). USW represented the Wickliffe mill unit of production and 

maintenance employees and negotiated a series of collective bargaining agreements (“CBA”) with 

Verso and its predecessors. Doc. No. 70. 

The parties’ settlement covers all retirees whose life insurance or death benefits were 

affected by Verso’s termination. Under the settlement, all living retirees covered under the nowterminated CBA are entitled to receive a life insurance death benefit of $2,750. Verso will also 

directly provide beneficiaries or next of kin of any deceased class member who died prior to the 

insurance being reinstated with a one-time lump-sum payment of $3,000. Doc. No. 68-2. The 

parties sought preliminary approval of their settlement, for approval of notice, and to set the 

deadline for class members to object. Doc. Nos. 68, 69, 74. 

B. Preliminary Approval of Class Action Settlement

This Court preliminarily approved the settlement agreement (“Agreement”) (Doc. No. 68-

2) and proposed notice to class members. Doc. No. 70. The Court set an objection deadline and 

fairness hearing. Doc. Nos. 70, 76. Verso provided notice of the settlement to the appropriate 

state and federal officials, as specified in 28 U.S.C. § 1715 (“CAFA”). Doc. No. 71. Class counsel 

provided notice, along with the claim forms, to the class members. Doc. Nos. 72, 77, 80. 

The class is defined as: 

All living and deceased retirees from Verso Corporation’s 

Wickliffe, Kentucky Papermill who were affected by Verso 

Corporation’s December 31, 2016 termination of the death benefit 

provided under the Parties’ collective-bargaining agreement.

II.

Upon review of the record, the Agreement and appendices thereto, and hearing from 

counsel for both sides at the fairness hearing, the Court finds the following:

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1. No class member objected to this settlement. 

2. All class members were given notice of this action, the proposed Agreement, and other 

pertinent information, as ordered by the Court. Notice (Doc. No. 68-3) was reasonable, 

the best notice practicable, and satisfied all the requirements of Rule 23 and due 

process. Indeed, the majority of the retiree class returned forms and participated in the 

class action.

3. Verso provided appropriate notice to the applicable state and federal officials. There 

were no objections.

4. Approximately 169 retirees will receive from Verso a $2,750 life insurance benefit, 

and about twenty-six beneficiaries will each receive from Verso a one-time lump sum 

$3,000 payment. Doc. No. 80; see also Doc. No. 68 at PageID 1717–18. 

5. The Court finds that the settlement reflected in the Agreement (Doc. No. 68-2) satisfies 

the standards for final approval of a class action settlement under Rule 23(e) and that 

it is fair, reasonable, and adequate.

6. Specifically, class representatives Clifford Bailey and James Spencer are adequate 

representative of the class members in that they are members of the class and possess

the same interests, and suffered the same injuries, as other class members. Bailey and 

Spencer serve as class representatives without compensation. All class members, 

including the class representatives, are treated alike by the Agreement. No class 

representative or class member receives preferential treatment.

7. Both sides vigorously pressed their interests throughout this litigation and reached a 

mutually beneficial and informed compromise at arm’s length.

8. Class counsel John G. Adam and Stuart M. Israel are qualified under Rule 23(g) and 

have adequately and admirably represented class members’ interests. Doc. No. 70 at 

PageID 1795–96. 

9. The relief provided to the class members under the settlement is fair, reasonable, and 

adequate, considering the costs, risks, and delay associated with trial and appeal. The 

legal landscape has become less favorable for retirees after M&G Polymers USA, LLC 

v. Tackett, 574 U.S. 427 (2015). Doc. No. 70 at PageID 1791–92.

10. The Agreement, reached by the parties. in the context of this new legal landscape, 

provides final resolution of the parties’ legal dispute, in that it will provide to each 

retiree lifetime, employer-paid life insurance at $2,750. Verso will pay $3,000 to the 

beneficiary of a retiree who dies before the $2,750 life insurance benefits are restored 

and provided through the insurer. Doc. No. 68 at PageID 1717–1718; Doc. No. 68-2 

at PageID 1734.

11. The Agreement provides certainty and greater security for all class members than 

continued litigation.

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12. Class counsel John G. Adam and Stuart M. Israel will receive from Verso $80,000 in 

fees and $2,874 in costs under the Agreement. Doc. No. 68-2 at PageID 1736. The 

value of the fund is approximately $540,000.00, with approximately 195 retirees and 

survivors participating. Class counsels’ fees and costs constitute about 15% of the 

common fund. Such an award is squarely within a reasonable range. Doc. No. 70 at 

PageID 1793.

III.

Considering the foregoing, the Court hereby ORDERS that:

1. The class settlement is hereby granted final approval; 

2. Verso shall implement the Agreement according to its terms;

3. Within 60 days of this Order, Verso shall:

a. Arrange for the $2,750 life insurance benefit for the class members and have the 

insurer or Verso notify the retirees of the insurer name and policy number. If a 

retiree has not provided all the information for the Cigna form, Verso shall 

distribute correspondence to the retiree within 30 days of this Order requesting the 

missing information to complete and effectuate the insurance enrollment process. 

Verso shall provide such retirees with a self-addressed stamped return envelope. 

Insurance enrollment will be effectuated only after receipt of the requested missing 

information from the retiree;

b. Send the appropriate W-9 tax form to each beneficiary and pay the one-time $3,000 

lump sum benefit within 45 days of receipt of the W-9 and a valid death certificate. 

If a beneficiary has not yet provided a death certificate, Verso shall send

correspondence to the beneficiary within 30 days of this order asking for the death 

certificate and shall provide the beneficiary with a self-addressed stamped return 

envelope. Verso shall not have to make the $3,000 payment until the beneficiary 

provides both the W-9 and death certificate; 

c. Pay class counsel $80,000 in fees and $2,874.00 in costs (payable to the Law Office 

of John G. Adam, PLLC); and

d. Provide class counsel with copies of communications and documents to the class 

members referred to in subsections (a)–(b) of the Agreement. 

IT IS FURTHER ORDERED THAT:

1. Pursuant to the Agreement, this action is hereby DISMISSED WITH 

PREJUDICE;

2. The clerk shall ENTER JUDGMENT ACCORDINGLY; and

3. This case is hereby TERMINATED on the docket.

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IT IS SO ORDERED.

Date: December 6, 2021 s/Michael J. Newman

Hon. Michael J. Newman

United States District Judge

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