Beazer Homes USA Inc. ERISA Litigation
On November 15, 2010, the Honorable Richard W. Story granted final approval of the Class Action Stipulation and Agreement of Settlement (“Settlement Agreement”).
The Consolidated Amended Complaint was filed in the United States District Court for the Northern District of Georgia. This litigation is on behalf of Plaintiffs and a class (the “Class”) of all persons who were participants in or beneficiaries of the Beazer Homes USA, Inc. 401(k) Plan (the “Plan”), between July 28, 2005 and May 12, 2008 (the “Class Period”) and whose accounts included investments in Beazer Homes common stock.
In the Consolidated Amended Complaint, Plaintiffs allege that during the Class Period, Defendants breached their fiduciary duties to Plaintiffs and the Class by: • failing to prudently and loyally manage the Plan’s assets • failing to properly monitor fiduciaries • failing to disclose necessary information to co-fiduciaries • failing to provide complete and accurate information to the Class • and failing to prevent breaches by other fiduciaries of their duties of prudent and loyal management, adequate monitoring, and complete and accurate communications. On April 2, 2010, Judge Story issued an order in which he granted in part and denied in part the Defendants’ motion to dismiss the Consolidated Amended Complaint. The order allowed Plaintiffs to proceed against Beazer Homes USA, Inc., Ian McCarthy, Brian Beazer, and the 401(k) Committee Defendants.
The Settlement provided for a payment of $5.5 million, net of expenses described in the Settlement Agreement, to the Plan for the benefit of the following Settlement Class:
All persons who were participants in or beneficiaries of the Beazer Homes USA, Inc. 401(k) Plan at any time between July 28, 2005 and May 12, 2008, and whose accounts(s) included investments in the Beazer Homes USA, Inc. Company Stock Fund. Excluded from the Settlement Class are Defendants, any entity in which Defendants have or had a controlling interest, or which is or was a parent or subsidiary of or is or was controlled by Beazer Homes USA, Inc., and the current and former officers, directors, affiliates, legal representatives, heirs, predecessors, and assigns of Defendants.
At the Fairness Hearing held on November 15, 2010, the Court approved the Settlement and the Plan of Allocation. The Court also issued its Order granting Plaintiffs’ motion for an award of attorneys’ fees and expenses, and service awards to the Plaintiffs.