Drust v Southwest Research Institute
IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF TEXAS, SAN ANTONIO DIVISION
Case No. 5:23-CV-767-XR
All participants and beneficiaries of the Southwest Research Institute Retirement Plan at any time on or after June 16, 2017, excluding the members of the Southwest Research Institute Retirement Plan Committee.
• The Court has given its preliminary approval to a proposed class action settlement (“Settlement”), in a lawsuit brought by certain participants in the Southwest Research Institute Retirement Plan (“Plan”) against Southwest Research Institute (“Defendant”), alleging violations of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) in relation to the management of the Plan. Defendant denies all claims, and nothing in the Settlement is an admission or concession on Defendant’s part of any fault or liability whatsoever. Defendant further maintains that it acted prudently and loyally at all times when acting in any fiduciary capacity with respect to the Plan.
• The Settlement will provide, among other things, for payment of a Gross Settlement Amount of $500,000 (“Gross Settlement Amount”) to resolve the claims against Defendant. Class Members are eligible to receive a pro rata share of the Net Settlement Amount remaining after payment of any Attorneys’ Fees and Costs, Administrative Expenses, and Class Representative Compensation to the Class Representative. The Net Settlement Amount will be allocated to Settlement Class Members according to a Plan of Allocation to be approved by the Court and further described below.
• Class Members with a positive balance in the Plan as of March 11, 2024 (“Current Participants”) will automatically receive allocations directly to their Plan accounts so long as they maintain a positive balance through the time Settlement monies are distributed. Class Members who participated in the Plan during the Class Period but who do not have an Active Account in the Plan as of March 11, 2024 (“Former Participants”) will receive their settlement payment via check.
• The terms and conditions of the Settlement are set forth in the Settlement Agreement dated March 11, 2024. Capitalized terms used in this Notice but not defined in this Notice have the meanings assigned to them in the Settlement Agreement. The Settlement Agreement is available at HERE. Certain other documents also will be posted on this page. You should visit this website if you would like more information about the Settlement or the lawsuit. All papers filed in this lawsuit are also available for review via the Public Access to Court Electronic Records System (PACER), at www.pacer.gov, or by appearing in person during regular business hours at the Office of the Clerk of the United States District Court for the Western District of Texas, United States Courthouse, located at 262 West Nueva Street, San Antonio, Texas 78207.
• Your rights and the choices available to you—and the applicable deadlines to act—are explained in the Notice. Please note that neither the Defendant nor any employees, attorneys, or representatives of the Defendant may advise you as to what the best choice is for you or how you should proceed.
• The Court still has to decide whether to give its final approval to the Settlement. Payments under the Settlement will be made only if the Court finally approves the Settlement, and that final approval is upheld in the event of any appeal.
• A Fairness Hearing will take place on August 9, 2024, at 11:00 a.m., before the Honorable Xavier Rodriguez of the United States Courthouse located at 262 West Nueva Street, San Antonio, Texas 78207, to determine whether to grant final approval of the Settlement and approve the requested Attorneys’ Fees and Costs, Administrative Expenses, and Class Representative Compensation. If the Fairness Hearing is rescheduled, or if it is held by video conference or telephone, a notice will be posted HERE.
• Any objections to the Settlement, or to the requested Attorneys’ Fees and Costs, Administrative Expenses, or Class Representative Compensation, must be served in writing to Class Counsel and the Defendant’s Counsel, as identified on page 7 of the Settlement Notice, at least 28 calendar days before the Fairness Hearing.
YOUR LEGAL RIGHTS AND OPTIONS UNDER THE SETTLEMENT
| If you are a Former Participant. You do not need to do anything to receive your share of the Settlement. | You do not need to do anything to receive your share of the Net Settlement Amount. The Settlement Administrator will mail you a check for your share of the Net Settlement Amount to your last known address. You may contact the Settlement Administrator to confirm or update your mailing address. The Settlement Administrator may be contacted by phone at 1-888-900-8779 or by mail at Southwest Research Settlement, c/o Atticus Administration, PO Box 64053, Saint Paul, MN 55164. |
| If you are a Current Participant. You do not need to do anything to receive your share of the Settlement. | You do not need to do anything to receive your share of the Net Settlement Amount. If, however, you are a Former Participant who no longer has a Plan account with a positive balance, or are the Beneficiary or Alternate Payee of a Former Participant, then the Settlement Administrator will mail you a check for your share of the Net Settlement Amount to your last known address. You may contact the Settlement Administrator to confirm or update your mailing address. The Settlement Administrator may be contacted by phone at 1-888-900-8779 or by mail at Southwest Research Settlement c/o Atticus Administration, PO Box 64053, Saint Paul, MN 55164. |
| You can object no later than July 12, 2024 | You cannot opt out of this Settlement. But, if you wish to object to any part of the Settlement, or to the requested Attorneys’ Fees and Costs, Administrative Expenses, or Class Representative Compensation, you may do so. You must submit your objection and any supporting documents to Class Counsel and the Defendant’s Counsel at least 28 calendar days before the Fairness Hearing. |
| You can attend a hearing on August 9, 2024 | You may also attend the Fairness Hearing and speak at the Fairness Hearing on August 9, 2024 at 11:00 a.m. Please note that you will not be permitted to make an objection to the Settlement at the hearing if you do not comply with the requirements for making objections. |
The Class Action
The above-referenced lawsuit, Drust v. Southwest Research Institute, et al., No. 5:23-cv-767 (W.D. TX) (the “Action” or “lawsuit”), has been pending since June 16, 2023. The Court supervising the case is the United States District Court for the Western District of Texas. The individual who brought this lawsuit is called the Class Representative, and the person that was sued is called the Defendant. The Class Representative (Mark Drust) is a current participant in the Plan. The Defendant is Southwest Research Institute. The claims in the lawsuit are described below on page 4 of the Notice, and additional information about them, including a copy of the operative Complaint, is available HERE.
The Settlement
The Settlement will provide, among other things, for a combined Gross Settlement Amount of $500,000 to be paid to resolve the claims against the Defendant. Class Members are eligible to receive a pro rata share of the Net Settlement Amount remaining after payment of any Administrative Expenses, any Attorneys’ Fees and Costs that the Court awards to Class Counsel, and any compensation that the Court awards to the Class Representatives. The Net Settlement Amount will be allocated to Settlement Class Members according to a Plan of Allocation to be approved by the Court and further described below.
In addition, the Settlement provides that no later than twelve months following the Settlement Effective Date, Defendant will engage and utilize the services of an independent consultant or consultants to assist with the monitoring of the Plan’s investments for a period of three years from the engagement.
Statement of Attorneys’ Fees and Costs, Administrative Expenses, and Class Representative Compensation Sought in the Class Action
Class Counsel has devoted substantial time and effort to investigating the facts, prosecuting the lawsuit, reviewing documents obtained from Defendant, and negotiating the Settlement. During that time, they also have advanced costs necessary to pursue the case. Class Counsel took the risk of litigation and have not been paid for any of their time or for any of these costs throughout the time this case has been pending.
Class Counsel will apply to the Court for payment of Attorneys’ Fees for their work in the case. The amount of fees that Class Counsel will request will not exceed one-third of the Gross Settlement Amount ($500,000). In addition, Class Counsel also will seek to recover their litigation costs and recoverable administrative expenses associated with the Settlement. Any Attorneys’ Fees and Costs and Administrative Expenses awarded by the Court will be paid from the Gross Settlement Amount. Class Counsel also will ask the Court to approve a payment, not to exceed $2,500, for the Class Representative who took on the risk of litigation and committed to spend the time necessary to bring the case against the Defendant to a conclusion. Any Class Representative Compensation approved by the Court will also be paid from the Gross Settlement Amount.
A full and formal application for Attorneys’ Fees and Costs, Administrative Expenses, and Class Representative Compensation will be filed with the Court on or before June 12, 2024. This application will be made available HERE. You may also obtain a copy of this application through the Public Access to Court Electronic Records System (PACER) at www.pacer.gov, or by appearing in person during regular business hours at the Office of the Clerk of the United States District Court for the Western District of Texas, United States Courthouse, located at 262 West Nueva Street, San Antonio, Texas 78207.