Merrill Lynch & Co. Inc. Securities, Derivative and ERISA Litigation

 

On August 21, 2009, Judge Rakoff granted final approval of the Stipulation and Agreement of Settlement ERISA Action (“Settlement Stipulation”).

Case History

The Consolidated Supplemental Complaint was filed in the United States District Court Southern District of New York on behalf of Plaintiffs and a class of all persons who were participants in or beneficiaries of the following Merrill Lynch sponsored plans: (1) the Merrill Lynch & Co., Inc. 401(k) Savings and Investment Plan; (2) the Merrill Lynch & Co., Inc. Retirement Accumulation Plan; and (3) the Merrill Lynch & Co., Inc. Employee Stock Ownership Plan (collectively, the “Plans”), and whose accounts included investments in Merrill Lynch common stock during the Proposed Class Period.

Plaintiffs alleged that during the Class Period the Defendants breached their fiduciary duties to Plaintiffs and the Class by:

• failing to prudently and loyally manage the Plans’ assets
• failing to monitor fiduciaries
• failing to disclose necessary information to co-fiduciaries
• failing to provide complete and accurate information to the Class
• and co-fiduciary liability.

The Settlement 

The Settlement provided for a payment of $75 million, net of expenses described in the Settlement Stipulation, to the Plans for the benefit of the following Settlement Class:

(a) a current or former participant in or beneficiary of any of the Merrill Lynch & Co., Inc. 401(k) Savings and Investment Plan, the Merrill Lynch & Co., Inc. Retirement Accumulation Plan or the Merrill Lynch & Co., Inc. Employee Stock Ownership Plan (which are referred to herein individually as a “Plan” and collectively as the “Plans”), and your individual Plan account(s) included investments in Merrill Lynch & Co., Inc. (“Merrill Lynch”) stock at any time during the period September 30, 2006 and December 31, 2008, inclusive (the “Class Period”) or (b) a beneficiary, alternate payee, representatives or successor in interest to a person described in clause (a).

Case Documents
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