Colonial BancGroup Inc. ERISA Litigation
On October 12, 2012, the Honorable Myron H. Thompson approved the parties’ Settlement Agreement, awarded attorneys’ fees and expenses to Class Counsel, and awarded incentive payments to the Class Representatives. Judge Thompson also approved a plan for allocating the net settlement proceeds to Class Members. The Settlement is now Final. The Plan of Allocation was implemented in March 2013.
The In re Colonial BancGroup, Inc. ERISA Litigation was filed in the United States District Court for the Middle District of Alabama. The case was filed on behalf of Plaintiffs and a class (“Class”) of all persons who were participants in or beneficiaries of The Colonial BancGroup 401(k) Plan (“Plan”), between April 18, 2007 and August 25, 2009 (“Class Period”) and whose Plan account included investments in Colonial common stock.
Plaintiffs allege in the Complaint 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 investment in Colonial stock
• failing to properly monitor fiduciary appointees
• failing to provide complete and accurate communications to the Plan’s participants and beneficiaries
• and failing to prevent breaches by other fiduciaries of their duties of prudent and loyal management, adequate monitoring, and complete and accurate communications.
The Settlement provides for a payment of $2.5 million, net of expenses described in the Settlement Agreement, for the benefit of the following Class:
All persons, other than Defendants, who were participants in or beneficiaries of the Plan at any time between April 18, 2007 and August 25, 2009, and whose accounts included investments in Colonial BancGroup stock.