This page provides the answers to class members’ most frequently asked questions.
The information provided is in summary form and is not intended as a complete explanation of your rights. For full and complete information, you are directed to review carefully the Notice of Pendency of Class Action and Proposed Settlement.
The lawsuit alleges that Defendants violated ERISA—the federal law that governs most retirement plans in the United States. The Plaintiffs claim that Defendants breached their fiduciary duties under ERISA by allowing the Plan to pay higher recordkeeping and administrative fees than necessary. Plaintiffs also alleged that certain Defendants failed to monitor the Plan’s fiduciaries who had responsibility over the Plan’s recordkeeping and administrative fees.
Defendants deny the allegations in the lawsuit. They have asserted that their conduct was entirely proper and that they complied with all applicable laws. Defendants have asserted, and would assert if the lawsuit continues, a number of defenses to Plaintiffs’ claims.
The Parties have agreed to the Settlement after extensive negotiations. By agreeing to the Settlement, the Parties avoid the costs and risks of further litigation, and Plaintiffs and other members of the Settlement Class will receive compensation. Class Counsel has reviewed the evidence in the case and the risks and benefits of continued litigation, and they believe the Settlement is in the best interest of the Settlement Class. The Court has not decided that Defendants have done anything wrong.
As part of the Settlement, Defendants have agreed to make a payment of $2,000,000.00 (the “Settlement Amount”). After deduction of any amounts the Court approves to pay settlement-related expenses (including Attorneys’ Fees and Expenses to Class Counsel, fees for hiring an Independent Fiduciary, Administration Costs, and Taxes and Tax-Related Costs), and any amounts to the Class Representatives as case contribution awards, the remaining amount (known as the “Net Settlement Amount”) will be paid to Settlement Class Members.
In particular, Class Counsel intends to ask the Court to approve up to one-third of the Gross Settlement Amount for attorneys’ fees, which is an amount no greater than $666,666.67. Class Counsel will also seek reimbursement for litigation expenses actually incurred and necessary for the prosecution of the litigation, including the pre-litigation investigation period, not to exceed $75,000.00, which also shall be recovered from the Gross Settlement Amount. In addition, Class Counsel will ask the Court to approve Class Representatives’ Case Contribution Awards not to exceed $5,000.00 each for each of the seven Class Representatives.
If you are a member of the Settlement Class and currently maintain an account under the Plan, you do not need to file a claim.
However, if you no longer maintain an account under the Plan you will have to submit a Former Participant Claim Form. This form is available here.