JPMorgan Agrees to Settle ERISA Action for $150 Million | Practical Law

JPMorgan Agrees to Settle ERISA Action for $150 Million | Practical Law

JPMorgan agreed to settle claims brought by several retirement funds under the Employee Retirement Income Security Act of 1974 (ERISA) for $150 million.

JPMorgan Agrees to Settle ERISA Action for $150 Million

Practical Law Legal Update 1-518-5234 (Approx. 3 pages)

JPMorgan Agrees to Settle ERISA Action for $150 Million

by PLC Employee Benefits & Executive Compensation
Published on 19 Mar 2012 • USA (National/Federal)
JPMorgan agreed to settle claims brought by several retirement funds under the Employee Retirement Income Security Act of 1974 (ERISA) for $150 million.
On March 16, 2012, seven months after the US District Court for the Southern District of New York held that defendant JPMorgan (JPMC) did not breach a fiduciary duty of loyalty to the plaintiffs under ERISA, the parties in Board of Trustees of the AFTRA Retirement Fund v. JPMorgan Chase Bank, N.A. filed a motion for preliminary approval of a settlement of the ERISA class action. Under the terms of the proposed settlement:
  • JPMC will pay $150 million to the class, allocated according to a court-approved allocation plan.
  • The plaintiffs and the class will dismiss their complaints and all related claims against JPMC.
  • JPMC will execute a similar release in favor of the class members.
  • JPMC will dismiss and release its third-party claims against certain class members' trustees, if it receives corresponding releases from the third-party defendants.
  • With the court's approval, the plaintiffs' lead counsel may seek attorneys' fees, expenses and case contribution awards for the named plaintiffs.
The parties proposed a final approval hearing on the settlement be held on June 4, 2012.
For more information on the underlying case, see Legal Update, JPMorgan Did Not Breach Duty of Loyalty to ERISA Clients: SDNY.