The American National Red Cross has settled a class action suit pertaining to its employee retirement savings plan for $950,000. Settlement pertains to the Red Cross Savings Plan and associated retirement plan account holders with account balances between March 2, 2015, and March 31, 2025. The class action alleged that the Red Cross and its Benefit Plan Committee violated fiduciary responsibilities by mismanaging plan investments, and failing to stem excessive administrative burden costs and fees on the plan.
Settlement Summary Table
| Settlement Aspect | Details |
|---|---|
| Settlement Amount | $950,000 |
| Class Period | Mar 2, 2015 – Mar 31, 2025 |
| Eligible Participants | Red Cross Savings Plan holders |
| Payment Distribution | Pro rata based on account balance |
| Claim Deadline | October 9, 2025 |
| Fairness Hearing Date | October 7, 2025 |
Background of the Lawsuit
The class action alleged that the defendants failed to prudently evaluate and manage administrative costs and the investment portfolio with particular reference to the underperforming Northern Trust Focus Funds. As of June 11, 2025, current participants with active accounts will have their payments directly deposited into their accounts. In contrast, cash payments and rollovers will be available to former participants and beneficiaries who request them by October 9, 2025.
Who Qualifies for the Settlement?
Eligible class members consist of all persons who had an account balance during the relevant period in the American Red Cross Savings Plan and any of its predecessor or successor plans. This also includes participants’ beneficiaries and alternate payees. However, former participants with a calculated payment of less than $9.99 will not receive any payment.
Important Deadlines and Court Actions
The Fairness Hearing to finalize the settlement has been scheduled for October 7, 2025, in the U.S. District Court for the District of Columbia. Because payments will only be distributed after the court approves the settlement, the deadline for claims from former participants, beneficiaries, and alternate payees is October 9, 2025.
Instructions for Claim Submission
Eligible participants and their beneficiaries must file their claim online or by sending the completed claim form to the settlement administrator at the address provided. Claim descriptions and instructions for online submission specify completion of Social Security numbers and other personal identifying information de-identified enabled system verification.
Frequently Asked Questions
1. Who is entitled to a payment?
Eligible participants are those with an account balance during the class period, beneficiaries and alternate payees.
2. Will current participants need to file a claim?
No. Participants with active accounts will receive payment by direct deposit.
3. What if the payment is less than $10?
Former participants will not receive a distribution on an account balance less than $9.99. This does not apply to current participants.
