In the Class Action, the Class Representatives claim that the Defendants failed to prudently monitor and control the Plans’ recordkeeping expenses and allowed class members to be charged amounts in excess of what similarly sized plans would have paid for such services. Specifically, the Class Representatives claim that the recordkeeping expenses charged to the Plans were unreasonable and that Defendants deducted excess fees from Class Members’ accounts for recordkeeping costs. A more complete description of what Plaintiffs allege is in the Third Amended Complaint, which is available here.

The Defendants have denied and continue to deny liability as to all claims and assert that they have always acted prudently and in keeping with their fiduciary duties under ERISA by monitoring, reviewing, and evaluating the recordkeeping expenses paid by the Plans and by ensuring the Plans and Plan participants paid reasonable fees for all recordkeeping services provided to the Plans.

The Court has not reached a final decision as to the Class Representatives’ claims. Instead, the Class Representatives and the Defendants have agreed to the Settlement. The Settlement is the product of arm’s length negotiations between the Class Representatives, the Defendants, and their counsel, who were assisted in their negotiations by a neutral, experienced mediator. The parties to the Settlement have taken into account the uncertainty, risks, and costs of litigation and have concluded that it is desirable to settle on the terms and conditions set forth in the Settlement Agreement. The Class Representatives and Class Counsel believe that the Settlement is best for the Settlement Class. Nothing in the Settlement Agreement is an admission or concession on the Defendants’ part of any fault or liability whatsoever. They have entered into the Settlement Agreement to avoid the uncertainty, expense, and burden of additional litigation. A copy of the Settlement Agreement is available here.

As part of the Settlement, a Gross Settlement Amount of $4,000,000 is being paid to resolve the claims in the Action. Class Members are eligible to receive a pro rata share of the Net Settlement Amount remaining after payment of Administrative Expenses, any Attorneys’ Fees and Costs that the Court awards to Class Counsel, and any compensation that the Court awards to the Named Plaintiffs. Allocations to Current Participants who are entitled to a distribution under the Plan of Allocation will be made into their existing accounts in the Plan. Former Participants who are entitled to a distribution may receive their distribution as a check or, if they choose, as a rollover to a qualified retirement account.

In addition, the Settlement provides that Defendants shall issue a new request for proposals for recordkeeping services for the Plans within one hundred eighty (180) days of the Settlement Effective Date.

In exchange for the foregoing monetary and prospective relief, all Settlement Class Members and anyone claiming through them will fully release the Defendants and other Released Parties from the Released Claims, as defined in the Settlement Agreement. The Released Parties include the Plans, each Defendant, each individual Administrative Committee member, and certain related parties as outlined in the Settlement Agreement. The Released Claims include any claims against any of the Released Parties with respect to any of the Plans arising on or before December 31, 2020 that were asserted in the Action or could have been asserted in the Action, or that are based on the same factual predicate, including those that arise out of, relate to, are based on, or have any connection with (i) the selection, oversight, retention or performance of the Plans’ recordkeeper, Alight Solutions, LLC, or (ii) the amounts paid to, received by, charged by, or deducted for recordkeeping, administrative or other services provided by the Plans’ recordkeeper or its affiliates that are related to the Plans. In addition, the Released Claims also include certain other claims as set forth in the Settlement Agreement.

This is only a summary of the Released Parties and Released Claims, and is not a binding description of either. The governing releases are found within the Settlement Agreement, which is available here.

The amount, if any, that will be allocated to you will be based upon records maintained by the Plans’ recordkeeper. Calculations regarding individual distributions will be performed by the Settlement Administrator, whose determinations will be final and binding, pursuant to the Court-approved Plan of Allocation. To receive a distribution from the Net Settlement Amount, you must either be a (1) “Current Participant”; or (2) a “Former Participant”; or (3) a Beneficiary or Alternate Payee of a person identified in (1) or (2). There are approximately 101,047 Settlement Class Members. The Net Settlement Amount will be divided pro rata among Settlement Class Members (and eligible Beneficiaries and Alternate Payees) based on their Settlement Allocation Score in relation to other Class Members. The Settlement Allocation Score takes into account: (1) the amount of fees deducted from Class Members in excess of the Disbursement Amount paid by the Plans for recordkeeping services; and the (2) the base amount, if any, that the Plans paid for recordkeeping services in excess of the current Base Recordkeeping Rate of $35.00 in a given year. A more complete description regarding the details of the Plan of Allocation can be found in Article 6 of the Settlement Agreement, which is available here.

Class Members do not need to do anything to receive a settlement share.

If you are a Current Participant, you will automatically receive a settlement payment to your Plan account. If you are considered a Current Participant because you had a Plan account with a balance greater than $0.00 as of July 30, 2021, but it is determined that you no longer have a Plan account balance greater than $0.00 when the Settlement proceeds are distributed to Settlement Class Members, the Settlement Administrator will mail you a check for your share of the Net Settlement Amount to your last known address. You may contact the Settlement Administrator to confirm or update your mailing address. The Settlement Administrator may be contacted by phone at 1-855-918-5985 or by mail at Koch ERISA Settlement, P.O. Box 2007, Chanhassen, MN 55317-2007.

If you are a Former Participant and you wish to receive your share of the Net Settlement Amount via rollover to an individual retirement account or another tax-qualified plan, then you must submit a Former Participant Rollover Form postmarked on or before December 27, 2021. If you are a Former Participant and you do not mail the Former Participant Rollover Form by the above deadline, you will receive your share of the Net Settlement Amount via check. A Former Participant Rollover Form is available here.

The timing of the distribution of the Net Settlement Amount is conditioned on several matters, including the Court’s final approval of the Settlement and any approval becoming final and no longer subject to any appeals in any court. An appeal of the final approval order may take several years. If the Settlement is approved by the Court and there are no appeals, the Settlement distribution likely will occur within approximately six months of the Court’s Final Approval Order, unless there are unforeseen circumstances. There will be no payments under the Settlement if the Settlement Agreement is terminated.

For purposes of the Settlement, the Court has appointed Nichols Kaster, PLLP, Austin & Sparks, P.C., and the Sanford Law Firm as Class Counsel in the Class Action. If you want to be represented by your own lawyer, you may hire one at your own expense.

In addition, the Court appointed Named Plaintiffs David Kinder, Tracy Scott, Elbert Peay, and Cherry Crawford, to serve as the Class Representatives. They are also Settlement Class Members.

Class Counsel will file a motion for an award of Attorneys’ Fees and Costs, Administrative Expenses, and Class Representatives’ Compensation at least 30 days prior to the objection deadline. This motion will be considered at the Fairness Hearing. Class Counsel will limit their application for Attorneys’ Fees to not more than one-fourth of the Gross Settlement Amount. Class Counsel also will seek to recover all actual and anticipated litigation costs and recoverable administrative expenses associated with the Settlement. In addition, Class Counsel will seek compensation for the Class Representatives of no more than $5,000 each. The Court will determine the amount of fees, costs, administrative expenses, and Class Representatives’ Compensation that will be awarded, if any. Class Counsel’s motion for Attorneys’ Fees and Costs, Administrative Expenses, and Class Representatives’ Compensation, once filed, will be available here.

No. The Settlement Class has been certified under Federal Rule of Civil Procedure 23(b)(1) and the Settlement has received final Court approval. Therefore, as a Settlement Class Member, you are bound by the Settlement and any judgments or orders that are entered in the Action.

The deadline for objecting to the Settlement has passed.

The Court held a Fairness Hearing on December 9, 2021 after notice of the Fairness Hearing was given to the Settlement Class. At the Fairness hearing, the Court considered whether the Settlement is fair, reasonable, and adequate. On December 9, 2021, the Court issued an order that granted final approval of the Settlement.

A copy of the final approval order is available here.