AFTRA, Artists Reach New Settlement In Benefits Suit

An $8.5 million settlement has been reached in the 9-year-old lawsuit involving recording artists who under their contracts are entitled to health and pension benefits from the funds unit of the American Federation of Television & Radio Artists (AFTRA). Soul legend Sam Moore and 14 other artists sued the trustees of AFTRA Funds for breach of fiduciary duty in 1993 for failing to keep accurate records and monitor record company contributions. Under the settlement, the named plaintiffs will receive $25,000 apiece, as opposed to $150,000 each under a previous agreement rejected by several of the plaintiffs. However, the plaintiffs now will be able to pursue further claims. Other monies will go to lawyers in the case. Tens of thousands of unnamed recording artists in the class-action part of the suit, who would have received only several hundred dollars each under the old settlement, now can bring grievances to an appointed arbitrator.

AFTRA leadership intervened against their own Funds unit last summer. U.S. District Court Judge Clarence Cooper ruled that AFTRA and the Recording Artists Coalition could file briefs opposing the original settlement. A pending court case against the labels continues.