National City Settles ERISA Suit for $43M

October 8, 2010 (PLANSPONSOR.com) - A settlement has been preliminarily approved in a consolidated class action lawsuit against National City Corporation, certain of its former officers and directors, and others alleging breaches of fiduciary duties under the Employee Retirement Income Security Act.

The settlement, announced by law firms Stull, Stull & Brody and Barroway Topaz Kessler Meltzer & Check, LLP, will provide for a payment of $43 million to the plan (minus court-approved attorneys’ fees, certain expenses, and case contribution awards to the named plaintiffs), which will then be allocated to the accounts of all current and former participants and beneficiaries of the National City Savings and Investment Plan who had portions of their plan accounts invested in National City common stock or fund units in the National City Stock Fund at any time during the period September 5, 2006, to December 31, 2008, and to Plan participants who held mutual funds of Allegiant Asset Management Company in their Plan accounts at any time from March 25, 2002, to December 31, 2009.  

According to the announcement, the suit claimed, among other things, that the defendants breached their fiduciary duties under ERISA by allowing the investment of the plan’s assets in National City common stock or National City Stock Fund units during a time when they knew or should have known that such investment was imprudent and that defendants breached their fiduciary duties by allowing the plan to invest in Allegiant Funds in violation of ERISA. 

All defendants deny all wrongdoing.   

More information is at http://www.NationalCityERISASettlement.com.

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