US court approves $1.85 million settlement for 575 Filipino nurses

NEW YORK —About 575 Filipino nurses in 30 US states will receive payments and other benefits after a New Jersey court approved a $1.85 million settlement in a class action lawsuit over allegedly excessive charges imposed on nurses who resigned from their jobs.

Monmouth County Superior Court Judge Owen McCarthy granted final approval to the settlement, involving Towne Nursing Staff Inc. and Towne Pediatric Homecare LLC, on October 7, 2026.

According to the nurses’ complaint, the companies required them to sign three-year contracts that could impose charges of tens of thousands of dollars if they resigned without what the contracts called “good reason,” or a sufficient reason specified in the agreement.

The companies were also accused of pursuing legal action, including arbitration, against nurses who did not pay. The alleged charges included lost income, attorney’s fees, and arbitration costs.

Towne denied any wrongdoing. The settlement resolves the disputed claims without any court finding that the companies were legally liable.

Under the settlement, 19 nurses will be fully reimbursed for money they paid after leaving their jobs early. Each is expected to receive about $25,000 on average. One nurse will receive $40,000, while seven others will receive at least $30,000 each.

The companies will also cancel the alleged debts of more than 100 nurses who left their jobs early or before December 3, 2025.

Meanwhile, nurses who did not pay any charge related to their resignation—including eligible current and former employees—are expected to receive about $1,080 each on average, according to their lawyers. The actual amounts received will vary.

The $1.85 million is the settlement’s total fund. Attorney’s fees, litigation expenses, administrative costs, and court-approved financial awards for the lead plaintiffs will first be deducted before the money is distributed to class members.

In addition to financial relief, the settlement will introduce changes to contracts for current and future nurses. These include clearer and more detailed disclosures of benefit-related costs and options to accept or decline certain expenses.

For covered nurses who leave early without “good reason” under the contract, Towne agreed to charge only the agreed-upon actual and direct costs specified in the settlement.

The case, Cruz v. Towne Nursing Staff Inc. et al., was filed by Jemarie Cruz, Mary Fober Ced, Alvin Javier, Shirley Anne Fajardo, Iñigo P. Espiritu, and Zaena Diamad. According to their lawyers, the settlement was reached after more than a year and a half of mediation and negotiations before the lawsuit was filed.

Payments will be automatically granted to participating settlement class members, and they do not need to take any action at this time, according to their lawyers. Affected nurses are encouraged to monitor the official settlement website for announcements about the payment schedule and distribution.—LDF, GMA News