January 23, 2024
New York Life Insurance Co. and thousands of current and former insurance company workers told a New York federal court Monday that they had struck a deal to settle a case alleging mismanagement of the employees’ 401(k) retirement plan.
Parties to the Employee Retirement Income Security Act suit said in a joint letter to the court that they had agreed to a “class-wide settlement-in-principle” and were hammering out a comprehensive agreement with plans to finalize the deal by Feb. 19. They also requested that the court defer ruling on a pending motion for class certification and issue a 30-day stay in the case, according to the joint letter.
If approved, the settlement would resolve an ERISA class action that former New York Life employee Stuart Krohnengold first brought in March 2021, alleging mismanagement of a plan that reported more than $5 billion in assets and 29,000 participants at the end of 2021.
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Kai Richter, an attorney for the proposed class, said in a statement Monday, “We are pleased to reach a settlement-in-principle of the action on a class-wide basis, and look forward to presenting the terms of the settlement in our forthcoming preliminary approval motion papers.”
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The proposed class is represented by Kai H. Richter, Jacob T. Schutz, Eleanor Frisch, Michelle C. Yau, Daniel R. Sutter and Michael Eisenkraft of Cohen Milstein Sellers & Toll PLLC.