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Czechowski v. Tandy Corporation

Arnold R. Levinson Obtains $16 million Class Action Settlement Against Radio Shack

Settlement is the Largest Ever Made by Radio Shack

After much investigation, Mr. Levinson discovered that Tandy Corporation, which operates Radio Shack, had engaged in a secret scheme to deprive its employees of accrued vacation benefits it owed them under California law. Tandy had attempted to create a phony ERISA plan by which it would pay its employees vacation benefits. Because ERISA wipes out all state laws that impact any ERISA plan, Tandy hoped that its special ERISA plan would nullify California's law that requires the payment of accrued vacation to all employees.

However, Mr. Levinson discovered that the Tandy ERISA vacation plan in fact had no money. It was a sham operation, which had as its only purpose the nullification of California law. When Tandy was caught red-handed, it was forced to settle the case. As result, approximately 40,000 former employees of Tandy Corporation were awarded a total of $16 million, which Tandy was required to give to them. It was the largest settlement ever made by Tandy Corporation.

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