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Mondelez faces ERISA class action over tobacco surcharge in health plan
The lawsuit is part of a wave that has produced more than 50 similar ERISA cases since 2024, including more than 30 filed in 2026.
Mondelez International has been named in an accelerating wave of ERISA class actions that challenge tobacco surcharges imposed through employer health plans, according to Bloomberg Law. The snack maker, whose brands include Oreo, Ritz, and Cadbury, joins other defendants including Target, Nestlé, Amgen, PepsiCo, Progressive, Campbell Soup, Waffle House, and Compass Group.
More than 50 substantially similar class actions have been filed in federal courts across the country since 2024, with more than 30 of those cases filed in 2026, according to Groom Law Group, a Washington, DC-based employee benefits law firm that has tracked the litigation.
Plaintiffs allege the tobacco surcharge violates ERISA when an employer’s wellness program fails to meet three requirements. Those requirements include offering a compliant reasonable alternative standard, disclosing that alternative in required plan materials, and providing certain information related to that alternative.