newsletter articles

AUGUST 2011

Historic Class Action Settlement Victory
for Iraq & Afghanistan Veterans 

On July 29^th, NVLSP held a press conference at the National Press Club in Washington, DC to announce a historic settlement victory for disabled veterans who served in Iraq and Afghanistan.  

The settlement obtained by NVLSP and pro bono co-counsel Morgan, Lewis & Bockius LLP in the class action lawsuit Sabo v. United States will benefit thousands of veterans who were medically discharged due to post-traumatic stress disorder (PTSD) between 2003 and 2008, but were denied the benefits to which they were legally entitled.  

“These veterans served our country in time of war, but have waited 3 to 8 years to receive the disability benefits which they’ve earned for their service,” said Bart Stichman, Joint Executive Director of NVLSP, which filed the class action lawsuit in 2008 along with Morgan Lewis. “Today, a terrible wrong to our nation’s war veterans is being righted.” For more than a thousand military families, today’s settlement brings some well-deserved peace of mind,” added Jim Kelley, lead partner for the team at Morgan Lewis, who along with colleagues at NVLSP and in-house counsel at HP and Pfizer provided free legal counseling to veterans who sought to opt into the class action lawsuit. 

As a result of the class action and the settlement that NVLSP and the government jointly asked the U.S. Court of Federal Claims to give preliminary approval to, the U.S. military agreed to pay lifetime disability retirement benefits to 1,029 veterans with PTSD who were denied these benefits upon discharge from the military following wartime service in Iraq or Afghanistan. This part of the agreement is a direct response to the allegation in NVLSP’s 2008 lawsuit that the military services violated the law by failing to assign a 50% disability rating to those discharged for PTSD – a disability rating that entitles the veteran to disability retirement benefits.   

To remedy these violations, these veterans will receive through the settlement: 

Entitlement to lifetime military disability retirement payments (which may result in the veteran receiving monthly payments from the military above what the veteran is receiving from the Department of Veterans Affairs) retroactive to the date of discharge.

Eligibility to apply for Combat-Related Special Compensation (which may increase the veteran’s monthly disability payments further).

Lifetime military healthcare (TriCare) for the veteran, his or her spouse, as well as their children until at least age 18.

Lifetime commissary and military post exchange privileges.

Eligibility to purchase life insurance coverage through the Survivor Benefit Plan.

Reimbursement for expenses paid for the medical treatment of the veteran, the veteran’s spouse, and the veteran’s minor children, from the date of the veteran’s separation from military service.

The settlement also stipulates that an additional 66 veterans who are class members will receive these same disability retirement benefits if they apply to the VA for disability benefits for PTSD and receive a VA disability rating of 30% or more.

Additionally, the military agreed to increase the PTSD disability rating of another 1,066 OIF/OEF veterans.  These veterans were given disability retirement benefits upon discharge, but were wrongfully denied a 50% disability rating for PTSD. The disability rating increases required by the settlement may qualify these veterans for thousands of dollars in back pay spanning several years. 

The settlement agreement was jointly filed by the military departments and NVLSP. Under the rules that apply to settlements of class actions, all class members will be notified of the settlement and given an opportunity to object. After any objections are received, the Court of Federal Claims will decide whether to grant final approval to the settlement. Given how favorable the settlement is for the veterans involved, NVLSP predicts that the Court will quickly grant final approval.    

“For the veterans impacted by the settlement with young families, getting healthcare benefits will make a huge difference in their daily lives,” said Stichman. “For those drowning in family medical bills incurred during the 3-8 years they waited for their benefits, the settlement offers reimbursement.  Many of them will likely be awarded hundreds of additional dollars every month in combat related special compensation. They will be able to shop at military commissaries and get other benefits that help their families. The settlement is a huge victory for veterans and their families.”