Bear Stearns Cos. ERISA Litigation
On September 20, 2012, the Honorable Robert W. Sweet granted approval of Named Plaintiffs Motion for Final Approval of Settlement, Approval of Class Notice, Certification of Settlement Class and Approval of Plan of Allocation as well as the Motion for an Award of Attorneys’ Fees, Reimbursement of Expenses and Case Contribution Awards to Named Plaintiffs.
The Settlement is now Final and the Net Proceeds of the Settlement Fund have been allocated to Settlement Class members pursuant to the Plan of Allocation. Notification letters were sent to eligible Class members with detailed information as to how they can access their accounts. For payment and account information, please contact the JP Morgan Chase 401(k) Savings Plan Call Center at (866) 576-2401.
The Second Amended Consolidated Complaint was filed in the United States District Court Southern District of New York. The Complaint is on behalf of Plaintiffs and a class of all persons who were participants in or beneficiaries of The Bear Stearns Cos. Inc. Employee Stock Ownership Plan (the “Plan”) and whose accounts included investments in Bear Stearns common stock.
Plaintiffs allege that Defendants breached their fiduciary duties to Plaintiffs and the Class members by:
- failing to prudently and loyally manage the Plan’s assets
- failing to avoid conflicts of interest
- and failing to monitor co-fiduciaries.
The Settlement provided for a payment of $10 million, net of expenses described in the Settlement Agreement, to the Plan for the benefit of the following Settlement Class:
(a) All Persons, who have been participants in The Bear Stearns Companies Inc. Employee Stock Ownership Plan, or the predecessors or successors thereto, at any time between August 1, 2007 and March 20, 2012 and whose accounts included investments in Bear Stearns stock, and (b) as to each Person within the scope of subsection (a) of Section 1.45 of the Settlement Agreement, his, her or its beneficiaries, alternate payees, Representatives and Successors in Interest; provided, however, that, notwithstanding the foregoing, the Settlement Class shall not include any of the Defendants or Immediate Family members of Defendants, except for Immediate Family, beneficiaries, alternate payees, Representatives or Successors in Interest who themselves are members of the Settlement Class with respect to their own Plan accounts.