This settlement resolves ERISA claims that Casey's General Stores charged its health-plan members a tobacco surcharge without offering a proper reasonable-alternative standard. If you paid that surcharge as a Casey's plan participant between 2019 and 2025, you are set to receive an automatic pro rata check from a $5.1 million fund — there is no claim form to file.
What Is This Settlement About?
A settlement has been reached in a class action lawsuit against Casey's General Stores, Inc. ("Casey's"). The case, Blalock, et al. v. Casey's General Stores, Inc., asserts claims under the Employee Retirement Income Security Act of 1974 ("ERISA") over a wellness program tied to the company's Employee Health Care Benefit Plan (the "Plan"). Plaintiffs allege that the Plan's tobacco surcharge discriminated against employees based on an impermissible health factor because it did not provide a reasonable alternative standard — a way for tobacco users to avoid the surcharge by completing an alternative program.Casey's denies the allegations. The company denies that it is liable, denies that the plaintiffs, Class Members, or the Plan suffered any harm, and asserts that its conduct was lawful. Casey's has agreed to settle solely to avoid the expense, inconvenience, and risk of continued litigation, without admitting any wrongdoing. Under the agreement, Casey's will pay $5,100,000 into a settlement fund to be distributed to eligible Plan participants.
Who Qualifies?
The Court decided that everyone who fits this description is a Class Member: all individuals residing in the U.S. who paid a tobacco surcharge in connection with their participation in the Casey's Employee Health Care Benefit Plan from January 1, 2019 through December 31, 2025 (the "Class Period"). You do not need to live in Iowa to be included, and both current and former Plan participants can qualify.How Much Can You Get?
Casey's has agreed to pay $5,100,000 into a settlement fund. That fund first covers the costs of administering the settlement, an independent fiduciary's review, any attorneys' fees and expenses the Court awards (not to exceed $1,699,999), and any case contribution awards to the class representatives (up to $15,000 total), all subject to Court approval. Whatever remains — the Net Settlement Amount — is divided among Class Members.Your share is proportional to the total tobacco surcharges you paid during the Class Period, less any refunds of those surcharges. In other words, the more you paid in surcharges between 2019 and 2025, the larger your payment. The exact amounts will be set by a Plan of Allocation in the Settlement Agreement, which will be posted on the settlement website before the Final Approval Hearing. Because individual surcharge histories differ, there is no single flat payment figure.
How Do You Get Paid?
You do not have to submit a claim form to receive settlement benefits. If the Court approves the settlement, payments are distributed automatically. Checks are mailed to the last known address of each Class Member after the settlement becomes final. If your address may have changed, you can update it or request electronic payment on the official settlement website so your payment reaches you.Each check will be valid for 200 days from the date it is issued. If a check is not cashed within that window, the Settlement Administrator handles the remaining funds according to the Court-approved Plan of Allocation. Payments are issued once the settlement receives final approval and any appeals are resolved in its favor.
Your Options and Deadlines
Because the Court is certifying this class under Federal Rule of Civil Procedure 23(b)(1), you cannot exclude yourself (opt out) from the settlement. If the settlement is approved, you will be bound by it and will release your related claims against Casey's, but you will also receive your share of the fund. Your options are:- Do nothing. You remain in the class, receive your automatic payment, and are bound by the settlement's release of claims.
- Object by September 28, 2026. If you don't like part of the settlement, you may write to the Court to object or comment. Objecting does not remove you from the class — you still receive your share whether or not you object.
- Attend the hearing on October 26, 2026. You may ask to speak at the Final Fairness Hearing about whether the settlement is fair. You are not required to attend.
The Final Fairness Hearing is scheduled for October 26, 2026 at 11:15 a.m. CT before the Honorable Stephanie M. Rose in the U.S. District Court for the Southern District of Iowa, in Des Moines. At that hearing, the Court will decide whether the settlement is fair, reasonable, and adequate, and will consider the requested attorneys' fees and any awards to the class representatives. The date and time can change by Court order, so check the settlement website for updates.
Frequently Asked Questions
Who qualifies for the Casey's tobacco surcharge settlement?
Anyone residing in the U.S. who was a participant in the Casey's General Stores, Inc. Employee Health Care Benefit Plan and paid a tobacco surcharge from January 1, 2019 through December 31, 2025 is a Class Member. Current and former participants both qualify.
Do I have to file a claim to get paid?
No. There is no claim form. If the Court approves the settlement, checks are mailed automatically to the last known address of each Class Member. You can optionally request electronic payment on the settlement website instead of waiting for a mailed check.
How much will I receive?
Casey's agreed to pay $5,100,000 into a settlement fund. After administrative costs, attorneys' fees, and any court-approved awards, the net fund is divided among Class Members in proportion to the tobacco surcharges each person actually paid during the class period, so individual amounts vary.
Can I opt out of the settlement?
No. Because the Court is certifying the class under Federal Rule of Civil Procedure 23(b)(1), Class Members cannot exclude themselves. You may object to the settlement in writing to the Court by September 28, 2026.
When will payments go out?
The Final Fairness Hearing is set for October 26, 2026. Payments are issued after the settlement receives final approval and any appeals are resolved. Each check is valid for 200 days from the date of issue.
Official Settlement Notice
Sources
- Official Settlement Website — Casey's Tobacco Surcharge Settlement
- Class Action Settlement Notice, Blalock, et al. v. Casey's General Stores, Inc., Case No. 4:25-cv-00113-SMR-SBJ (S.D. Iowa)
