1. Why Did I Receive This Settlement Notice?

The Settlement Administrator has caused Notice to be sent to you because its records indicate that you may be a Current or Former Participant Class Member. If you fall within the definition of the Settlement Class, you have a right to know about the Settlement and about all the options available to you before the Court decides whether to give its final approval to the Settlement.

2. What Is The Class Action About?

In the Class Action, the Class Representative claims that the Defendant breached the duty of prudence by failing to prudently select and monitor the Plan’s investments and remove imprudent investments. A more complete description of Plaintiff’s allegations is in the Complaint, which is available HERE.

Defendant has denied and continues to deny liability as to all claims and asserts that it has always acted prudently and in keeping with its fiduciary duties under ERISA.

3. Why Is There A Settlement?

The Court has not reached a final decision as to the claims. Instead, the Class Representative and the Defendant have agreed to the Settlement. The Settlement is the product of arm’s-length negotiations between the Class Representative, the Defendant, and their counsel. The parties to the Settlement have taken into account the uncertainty, risks, and costs of litigation, and have concluded that it is desirable to settle on the terms and conditions set forth in the Settlement Agreement. The Class Representative and Class Counsel believe that the Settlement is best for the Settlement Class. Nothing in the Settlement Agreement is an admission or concession on the Defendant’s part of any fault or liability whatsoever. They have entered into the Settlement Agreement to avoid the uncertainty, expense, and burden of additional litigation.

4. What Does The Settlement Provide?

As part of the Settlement, a Gross Settlement Amount of $500,000 is being paid to resolve the claims in the Action. Class Members are eligible to receive a pro rata share of the Net Settlement Amount remaining after payment of Administrative Expenses, any Attorneys’ Fees, and Costs that the Court awards to Class Counsel, and any compensation that the Court awards to the Class Representative. Allocations to Current Participants who are entitled to a distribution under the Plan of Allocation will be made into their existing accounts in the Plan. Former Participants who are entitled to a distribution will receive their distribution as a check sent to their last known address.

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.

In exchange for the foregoing monetary and prospective relief, all Settlement Class Members and anyone claiming through them will fully release the Defendant and other Released Parties from the Released Claims, as defined in the Settlement Agreement, HERE. Generally, the release means that Class Members will not have the right to sue the Plan, Defendant, or related parties for conduct during the Class Period arising out of or related to the allegations in the Action.

5. How Much Will My Distribution Be?

The amount, if any, that will be allocated to you will be based upon records maintained by the Plan’s recordkeeper. Calculations regarding individual distributions will be performed by the Settlement Administrator, whose determinations will be final and binding, pursuant to the Court-approved Plan of Allocation.

To receive a distribution from the Net Settlement Amount, you must either be a (1) “Current Participant” as described on page 2; or (2) a “Former Participant” as described on page 2; or (3) a Beneficiary or Alternate Payee of a person identified in (1) or (2).

There are approximately 7,840 Settlement Class Members. The Net Settlement Amount will be divided pro rata among Settlement Class Members (and eligible Beneficiaries and Alternate Payees) based on their Average Account Balance during the Class Period in relation to other Class Members. To calculate the Average Account Balance, the Settlement Administrator will review Class Members’ account balances in the Plan for each quarter during the Class Period. A Class Member’s Average Account Balance shall be the average of the quarterly scores during the Class Period, weighted to account for partial quarters.

A more complete description regarding the Plan of Allocation can be found in Article 6 of the Settlement Agreement, available HERE.

6. How Can I Receive My Distribution?

If you are considered a Current Participant because you had a Plan account with a balance greater than $0.00 as of March 11, 2024, but it is determined that you no longer have a Plan account balance greater than $0.00 when the Settlement proceeds are distributed to Settlement Class Members, 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 considered a Former Participant, 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.

7. When Will I Receive My Distribution?

The timing of the distribution of the Net Settlement Amount is conditioned on several matters, including the Court’s final approval of the Settlement and any approval becoming final and no longer subject to any appeals in any court. An appeal of the final approval order may take several years. If the Settlement is approved by the Court and there are no appeals, the Settlement distribution likely will occur within approximately six months of the Court’s Final Approval Order, unless there are unforeseen circumstances. There will be no payments under the Settlement if the Settlement Agreement is terminated.

8. Can I Get Out Of The Settlement?

No. The Settlement Class has been certified for settlement purposes under Federal Rule of Civil Procedure 23(b)(1). Therefore, as a Settlement Class Member, you are bound by the Settlement (if it receives final Court approval) and any judgments or orders that are entered in the Action. If you wish to object to any part of the Settlement, you may write to Class Counsel and the Defendant’s Counsel about why you object to the Settlement, as discussed below.

9. Who Represents The Settlement Class?

For purposes of the Settlement, the Court has appointed Nichols Kaster, PLLP as Class Counsel in the Class Action. If you want to be represented by your own lawyer, you may hire one at your own expense. In addition, the Court appointed Mark Drust (the named Plaintiff) to serve as the Class Representative. He is also a Class Member.

10. How Will The Lawyers Be Paid?

Class Counsel will file a motion for an award of Attorneys’ Fees and Costs, Administrative Expenses, and Class Representative Compensation at least 30 days prior to the objection deadline. This motion will be considered at the Fairness Hearing. Class Counsel will limit their application for attorneys’ fees to not more than one-third of the Gross Settlement Amount. Class Counsel also will seek to recover all actual and anticipated litigation costs and recoverable administrative expenses associated with the Settlement. In addition, Class Counsel will seek compensation for the Class Representative of no more than $2,500. The Court will determine the amount of Attorneys’ Fees and Costs, Administrative Expenses, and Class Representative Compensation that will be awarded, if any. Class Counsel’s motion for Attorneys’ Fees and Costs, Administrative Expenses, and Class Representative Compensation, will be posted HERE, will also be available for review via the Public Access to Court Electronic Records System (PACER), at www.pacer.gov, and can be obtained 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.

11. How Do I Tell the Court If I Don’t Like the Settlement?

If you are a Settlement Class Member, you can object to the Settlement by mailing a written objection to Class Counsel and to the Defendant’s Counsel (as identified below) that explains why you object.

Your written objection must: (1) clearly identify the case name and number: Drust v. Southwest Research Institute, et al., No. 5:23-cv-767 (W.D. TX); (2) include your full name, current address, and telephone number; (3) describe the basis for your objection; and (4) include your signature.

Your written objection and supporting documents must be personally delivered, or sent by U.S. mail or courier, to Class Counsel and the Defendant’s Counsel as set forth below no later than July 12, 2024 to be considered. Class Counsel and the Defendant will have an opportunity to respond to your objection.

Class Counsel

Brock Specht
Paul Lukas
Ben Bauer
NICHOLS KASTER, PLLP
4700 IDS Center
80 South 8th Street
Minneapolis, MN 55402

Defendant’s Counsel

Jeremy Blumenfeld
MORGAN, LEWIS & BOCKIUS LLP
1701 Market Street
Philadelphia, PA 19103

12. When and Where Will the Court Decide Whether to Approve the Settlement?

The Court will hold a Fairness Hearing at 11:00 a.m. on August 9, 2024, at the United States District Court for the Western District of Texas, United States Courthouse, located at 262 West Nueva Street, San Antonio, Texas 78207 At the Fairness Hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. The Court also will consider the motion for Attorneys’ Fees and Costs, Administrative Expenses, and Class Representative Compensation. If there are objections, the Court will consider them then. Please note that if the Fairness Hearing is rescheduled, or if it is held by video conference or telephone, a notice will be posted HERE.

13. Do I Have to Attend the Fairness Hearing?

No, but you are welcome to come at your own expense. You may also make an appearance through an attorney. If you send an objection, you do not have to come to the Court to talk about it. As long as you mailed your written objection on time, the Court will consider it.

14. May I Speak at the Fairness Hearing?

Yes, but you must comply with the requirements for making an objection (described above) if you wish to object to the Settlement. If you do not comply with the requirements for making an objection, you will not be permitted to object at the Fairness Hearing.

15. What Happens if I Do Nothing At All?

If you are a “Former Participant” as described above, and you do nothing, and the Settlement is finally approved, you will receive your pro rata share of the Net Settlement Amount via check. If you are a “Current Participant” as described on page 2, and you do nothing, you will receive your pro rata share of the Net Settlement Amount as a deposit to your Plan account if the Settlement is finally approved.

If you are a “Current Participant” as described above, and you do nothing, you will receive your pro rata share of the Net Settlement Amount as a deposit to your Plan account if the Settlement is finally approved. If you are a “Former Participant” as described on page 2, and you do nothing, and the Settlement is finally approved, you will receive your pro rata share of the Net Settlement Amount via check.

16. How Do I Get More Information?

If you have questions regarding the Settlement, you can visit this website, call 1-888-900-8779 or write to the Settlement Administrator at Southwest Research Settlement c/o Atticus Administration, PO Box 64053, Saint Paul, MN 55164. 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. Please note that neither the Defendant nor any employees, attorneys, or representatives of the Defendant may advise you regarding the Settlement or how you should proceed.