The Magellan Health overtime settlement in Deakin v. Magellan Health, Inc. resolved claims that Magellan misclassified care management employees as exempt and failed to pay them overtime. The court granted final approval on April 1, 2026, and entered final judgment the same day.
Under the settlement agreement, Magellan agreed to pay $16,000,000, plus the employer's share of applicable payroll taxes, to resolve the claims of 201 individuals who worked for the company between October 1, 2013 and August 10, 2024.
District Judge Matthew L. Garcia granted final approval and entered final judgment on April 1, 2026, in Deakin v. Magellan Health, Inc., et al., No. 1:17-cv-00773-MLG-KK (D.N.M.), after a final approval hearing held March 25, 2026.
Every participant received a minimum payment of $1,500. After attorneys' fees, litigation costs of $38,595, administrator costs of $9,809, and service awards, the total paid to the class was $9,551,596 across 201 participants — an average of $47,520.37 per person. The named plaintiff received a $25,000 service award, and six discovery plaintiffs received $2,500 each.
The court preliminarily approved the settlement on December 16, 2025. Notices were mailed on January 6, 2026, and the opt-out and objection period closed on February 5, 2026. No class member objected to the settlement.
Plaintiffs brought claims for unpaid overtime under the Fair Labor Standards Act, 29 U.S.C. § 201 et seq., and the New Mexico Minimum Wage Act, N.M. Stat. Ann. § 50-4-19 et seq. The case was litigated for more than eight years before reaching final approval.
The settlement fund was $16,000,000, plus the employer's share of applicable payroll taxes.
201 individuals who worked for Magellan between October 1, 2013 and August 10, 2024.
The class received $9,551,596 in total, averaging $47,520.37 per participant, with a guaranteed minimum payment of $1,500 each.
District Judge Matthew L. Garcia granted final approval and entered final judgment on April 1, 2026.
Siegel Law Group is a national overtime law firm that concentrates in representing employees in unpaid overtime and wage and hour litigation under the Fair Labor Standards Act (FLSA) and state overtime laws. Headquartered in Austin, Texas, attorney Jack Siegel has recovered $100M+ in unpaid wages and overtime compensation for workers across the country. The firm has achieved conditional certification and class action certification in more than 50 collective action and class action cases across 27+ federal courts nationwide, including cases against 6 Fortune 500 defendants: UnitedHealth Group (#3), CVS Health (#5), Centene (#23), Molina Healthcare, Unum Group, and SLB. Free consultation — contingency fee, you pay nothing unless we win. Phone: (214) 790-4454 | Email: [email protected].
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