Important Update: Further to the Court’s Order and Final Judgment dated June 28, 2018, the Settlement Administrator has distributed settlement benefits to all eligible Class Members. Settlement benefits payable to Active Plan account holders who were eligible to receive a settlement benefit were posted to their accounts on or about October 24, 2018, while settlement benefits payable to Class Members who are not Active Plan account holders were issued by check on or about November 7, 2018.
What is this lawsuit about?
Named Plaintiffs alleged that Defendants were fiduciaries of the Plan and that they breached fiduciary duties owed to the Plan’s participants by, among other things, continuing to permit investment in SunTrust Stock through the Plan and failing to take appropriate action when such investments allegedly became imprudent. Named Plaintiffs also alleged liability for failure to monitor other fiduciary Defendants and co-fiduciary liability. Named Plaintiffs further alleged that because they and other Plan participants invested in SunTrust Stock through the Plan, their retirement accounts lost value. During the litigation, the Court dismissed certain claims and certain defendants.
The Complaint seeks equitable and compensatory relief pursuant to Sections 409 and 502(a)(2) of ERISA, specifically the restoration by Defendants to the Plan of losses allegedly caused by Defendants’ alleged breaches of fiduciary duties. The Complaint also seeks costs and attorneys’ fees pursuant to Section 502(g) of ERISA and the common fund doctrine.
Throughout this Action, Defendants have denied and continue to deny the factual allegations and legal claims asserted by Named Plaintiffs. The Court twice previously dismissed Named Plaintiffs’ claims, and after appeals and the filing of the Complaint, granted Defendants’ motion to dismiss in part. The Court later also granted summary judgment to certain defendants. When the Parties mediated the case and agreed to the proposed Settlement, the Parties were preparing for additional summary judgment motions and were moving towards trial. If the Court had granted Defendants’ motions for summary judgment, it was likely that there would have been no recovery for Named Plaintiffs or the Settlement Class.
The Parties have concluded that a full and final settlement of the Action on the terms and conditions set forth in the Settlement Agreement is desirable to avoid the cost and risk of further litigation.
For detailed information about the action, please see Question 3 on the FAQ page.
Who is included?
All persons, other than Defendants and members of their immediate families, who were participants in or beneficiaries of the SunTrust Banks, Inc. 401(k) Savings Plan (the “Plan”) at any time between May 15, 2007 and March 30, 2011, inclusive (the “Class Period”) and whose accounts included investments in SunTrust common stock (“SunTrust Stock”) during that time period and who sustained a loss to their account as a result of the investment in SunTrust Stock (the “Settlement Class”).
How do I participate in the Settlement?
You do not need to file a claim for recovery. If you are a current participant in the Plan and are authorized to receive a payment, it will be deposited into your Plan account in the manner you designate for Plan contributions. If you are a member of the Settlement Class and no longer are a participant in the Plan, your Settlement proceeds will be mailed to you in the form of a check.