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New York Life To Pay $19M To Settle Retirement Plan Suit


February 26, 2024

Current and former New York Life Insurance workers asked a federal court Monday to approve a $19 million deal in a proposed class action alleging the insurance giant unlawfully kept underperforming proprietary investment options in two employee retirement plans.

Plan participants leading the Employee Retirement Income Security Act suit said in a motion for preliminary approval that the settlement is in line with pacts previously approved in similar suits and avoids the costs and risks associated with continuing the complex litigation. The filing comes just over a month after workers and New York Life told the court they had agreed to resolve the suit and needed time to hammer out details.

According to Monday’s motion, the $19 million settlement totals approximately 20% to 25% of the alleged losses that workers claimed were due to the company’s mismanagement of two New York Life retirement plans. Plan participants said they intend to ask that up to 33% of the settlement go toward attorney fees as well as $10,000 in service awards to each of the 10 named plaintiffs.

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The proposed class is represented by Kai Richter, Jacob T. Schutz, Eleanor Frisch, Michelle C. Yau, Daniel R. Sutter, Caroline E. Bressman and Michael Eisenkraft of Cohen Milstein Sellers & Toll PLLC.

Read New York Life To Pay $19M To Settle Retirement Plan Suit.