Merrill settles 401(k) class action for $75M

Participants in the 401(k) plan at Merrill Lynch & Co. Inc. have reached a $75 million preliminary settlement with the brokerage firm to cover losses sustained in their retirement plans over the last several years.
APR 06, 2009
Participants in the 401(k) plan at Merrill Lynch & Co. Inc. have reached a $75 million preliminary settlement with the brokerage firm to cover losses sustained in their retirement plans over the last several years. Cohen Milstein Sellers & Toll PLLC of Washington, along with Keller Rohrback LLP of Seattle, announced the proposed settlement this morning. Marc Machiz, an attorney with Cohen Milstein, who is representing Merrill workers in the class action, added that a federal court will hold a hearing at the end of July to determine if the payment will be approved. He said that the class notice will be going out later this week to Merrill workers who participated in the company’s 401(k), retirement accumulation plan, or stock ownership plan between Sept. 30, 2006 and Dec. 31, 2008. During this period, the value of Merrill's stock declined by more than 80%. The class action was initiated by participants in November 2007 to recoup some of the losses they incurred for investing a portion of their retirement savings in Merrill stock. The suit alleged that the company should have known that its stock was an imprudent investment option for its plan participants. A Merrill spokesperson could not be immediately reached for comment.

Latest News

Retirement withdrawal strategies shift as US assets hit $51.2T
Retirement withdrawal strategies shift as US assets hit $51.2T

Advisors say record balances aren't a retirement income plan and urge clients to benchmark their lives, not an index

RIA revenue tool targets fee leakage as PE growth pressure mounts
RIA revenue tool targets fee leakage as PE growth pressure mounts

Wealth enterprises are leaving revenue on the table - a new PureFacts and Ascentix partnership aims to help firms take it back.

The Stacking Strategy: How Intelligent Allocation Can Create Better Tax Outcomes
The Stacking Strategy: How Intelligent Allocation Can Create Better Tax Outcomes

What if one investment decision could create tax-saving opportunities across your entire portfolio? Chris Vizzi shares how the Stacking Strategy helps investors align tax planning, portfolio construction, and wealth preservation to maximize long-term outcomes while keeping more of what they earn.

AI could drag down RIA valuations, warns Alaris CEO Allen Darby
AI could drag down RIA valuations, warns Alaris CEO Allen Darby

Buyers spending on AI may treat less efficient sellers as overstaffed and price the cost of rightsizing into lower offers

Former Western Asset Management star bond manager fined $3 million
Former Western Asset Management star bond manager fined $3 million

Kenneth Leech pleaded guilty in June to one obstruction charge, and could face six to 12 months ⁠in ​prison.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor