Successes
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Merrill Lynch ERISA Violations Litigation
On August 21, 2009, the Court granted final approval of the Settlement in In re Merrill Lynch & Co., Inc., et al., ERISA Litig., which provides for payment of $75 million to the Settlement Class.
Cohen Milstein Sellers & Toll PLLC serves as interim co-lead class counsel in this class action which alleged breaches of fiduciary duty in violation of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), with to the acquisition and holding of Merrill Lynch stock in the Plans.
For more information on the settlement, please visit http://www.merrilllyncherisasettlement.com/
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Azon ESOP Litigation
Class action lawsuit settled for $9.35 million in a case filed on behalf of approximately 500 Azon ESOP participants and their beneficiaries alleging the ESOP overpaid for Azon Stock in a September 1999 $25 million Transaction, caused Azon to assume more debt than it could service and that by doing so, the Transaction destroyed the value of existing shares held by the ESOP, and helped drive Azon into bankruptcy.
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Dynegy 401k Litigation
Class action settlement for $30.75 million on behalf of a class of participants and beneficiaries of the Dynegy 401k Plan between April 27, 1999 and January 30, 2003 for lawsuits against the fiduciaries of the Plan that alleged breaches of fiduciary duty in connection with the Plan’s investment in Dynegy stock.
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Fireman's Fund Insurance Company Medical Benefits Litigation
Class action lawsuit settled on behalf of disabled former Fireman’s Fund employees who were terminated as a result of the adoption of a policy by Fireman’s Fund Insurance Company to terminate the employment status of disabled employees who were unable to return to work and current employees who were subject to the policy if they became disabled. Settlement restored class members ability to receive health, dental and vision insurance through FFIC for up to 13 years and established a fund of $225,000 for approximately 100 terminated employees to receive reimbursement for past medical expenses.
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Fujitsu Group Partial Termination Litigation
Class action lawsuit settled on behalf of former employees of Fujitsu of America or its subsidiaries who were laid off with more than three years of service. As part of the settlement, Fujitsu Group 401(k) Plan restored 80% of the additional amounts that Class members would have received but for the Amendment. The lawsuit alleged that Fujitsu violated ERISA by adopting a plan provision changing the plan’s vesting schedule in violation of a provision of ERISA that prohibits the involuntary application of such changes to employees with more than three years of service under the plan.
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New York Life Pension & 401k Fee Litigation
One of the earliest fee litigations, this class action settlement obtained $14 million on behalf of current and former participants in the pension and 401(k) plans who had account balances. The lawsuit centered around allegations of intentional and/or imprudent and disloyal failure to take advantage of the Plans' considerable bargaining clout to obtain appropriately-priced investment vehicles, and instead to use the far more expensive NYL-proprietary mutual funds -- namely, the New York Life Institutional/MainStay Institutional/Eclipse Funds, priced to be marketed to smaller investors -- in an effort to build those product lines and boost Company profits. The settlement also required the plans' fiduciaries to utilize an independent adviser to provide advice regarding appropriate investments for each of the plans.
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SBC Pension Benefit Plan Non-Bargained Program Pension Calculation Litigation
Class action lawsuit settled for $16 million in a case filed on behalf of approximately 3800 management retirees who took the Enhanced Grandfathered Benefit offered under an early retirement package known as the EPR. The lawsuit alleged that SBC miscalculated the pensions for this group of retirees by omitting a pay period in the average annual compensation calculation of their pension benefit.
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TXU Corporation Thrift Plan Litigation
Class action settlement for $7.25 million on behalf of a class of participants and beneficiaries alleging fiduciaries breached their fiduciary duties from April 26, 2001 through October 11, 2002 when TXU and its management disseminated materially inaccurate, incomplete, and misleading statements and omissions regarding the financial condition of TXU.
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Williams Companies 401k Plan Litigation
Class action lawsuit settled for $55 million in cash and approximately $57 million in equitable relief on behalf of a class of participants and beneficiaries of the Williams Investment Plus Plan against the fiduciaries of the Plan that alleged breaches of fiduciary duty in connection with the Plan’s investment in Williams Companies and Williams Communications Group stock.
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Goodyear Retiree Health Care Litigation
In the course of this litigation, Class Counsel on behalf of the Plaintiffs successfully certified a Class and obtained approval of a Settlement Agreement between the retirees, Goodyear and the United Steel Workers. The Settlement Agreement resulted in the establishment of a trust (called a Voluntary Employee Beneficiary Association or VEBA) through which retiree healthcare benefits would be provided in the future. The VEBA received an initial contribution of approximately $1 billion from Goodyear, subsequent contributions from active Goodyear employees during the 2006 collective bargaining term and possible future contributions from active Goodyear employees. The VEBA is administered independent of Goodyear, which is no longer responsible for providing retiree healthcare benefits. The Settlement Agreement was approved by the court on August 22, 2008 and the VEBA became operational shortly thereafter.
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International Ladies' Garment Workers' Union
In the course of the litigation, Class Counsel on behalf of plaintiffs successfully certified a Class, defeated a motion for summary judgment, conducted extensive discovery, and engaged in protracted settlement negotiations. On March 27, 2007, the court approved a partial settlement agreement with all Defendants other than the Heritage Fund, which provided for a benefit increase for beneficiaries of participant class members who have died or will die on or after December 1, 2002. A settlement agreement between the Plaintiffs and the Heritage Fund was approved by the court on December 4, 2008, which requires the payment of $6.1 million (net of expense) from the Heritage Fund into the ILGWU Death Benefit Fund. Implementation of the settlement agreements was held in abeyance pending an appeal which was dismissed on July 7, 2009. As a result of the settlement agreements, participants will receive a benefit increase of more than $900 with the possibility of larger increases in the future. In addition, a class trustee has been appointed by the court to take office as one of the Fund’s trustees.
For more information, please contact us at lawinfo@cohenmilstein.com.