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Conseco
Services LLC. ERISA Litigation
Roderick W. Russell, et al., v.
Conseco Services LLC, et al.
United States District Court, Southern District of Indiana,
Indianapolis Division
Case No. 1:02-cv-1639-LJM
Keller
Rohrback LLP is Court Appointed Co-Lead Counsel. Keller Rohrback
partners Lynn Lincoln Sarko, Elizabeth A. Leland and T. David Copley
exercised primary responsibility for this case. During the course of
the litigation, we worked very closely with our co-counsel Stull Stull
and Brody.
This
case was filed against: Conseco Services, LLC (a wholly owned
subsidiary of Conseco, Inc.), Stephen B. Hilbert, Rollin M. Dick, Gary
C. Wendt, William J. Shea, Charles B. Chokel, John B. Sabl, Thomas J.
Kilian, Richard H. Kremer, Edward M. Berube, Elizabeth C.
Georgakopoulous, David K. Herzog and John Does 1-30. At all times
relevant to this Complaint, Defendants were fiduciaries of the Plan as
defined by ERISA §3(21)(A), 29 U.S.C. §1002(21)(A), because they
exercised discretionary authority or control with respect to the
management of the Plan or exercised discretionary authority or control
with respect to the management or disposition of assets and had
discretionary authority or responsibility in the administration of the
Plan, and because they made representations to Participants for the
purpose of affecting Participant decisions with respect to the Plan.
The
Allegations
The Amended Complaint alleges that Defendants breached their fiduciary
duties to the Plan and the Participants in various ways, including, but
not limited to: (i) misrepresenting and failing to disclose material
facts to the Plan and the Participants in connection with the
administration of the Plan; (ii) failing to exercise their fiduciary
duties to the Plan and the Participants solely in the interests of the
Participants and their Beneficiaries for the exclusive purpose of
providing benefits to Participants and their Beneficiaries; (iii)
failing to manage the Plan’s assets with the care, skill, prudence or
diligence of a prudent man under the circumstances and imprudently
failing to diversify the investments in the Plan so as to minimize the
risk of large losses; and (iv) permitting the Participants to continue
to elect to invest their retirement monies in Conseco common stock when
it was imprudent to do so and when the Participants were not provided
with timely, accurate and complete information concerning the Company
as required by applicable law.
The Case
is a Class Action
This lawsuit was filed by Roderick W. Russell on behalf of himself and
all other similarly situated – basically all persons who were plan
members between April 28, 1999 and September 9, 2003, whose Plan
accounts acquired or held Conseco stock, as well as their beneficiaries
or successors.
The
Settlement
On July 30, 2004, the trial court entered an Order dismissing the
Amended Complaint. That Order was appealed to the United States Court
of Appeals for the Seventh Circuit. In March 2005, while the litigation
remained on appeal, the Plaintiffs and Defendants reached an agreement
for a settlement.
On
August 16, 2005 the Court preliminarily approved a settlement of $9.975
million to reimburse the class members for their losses. The Notice of
Proposed Class Action Settlement was mailed to all known class members
in early September.
On
October 14, 2005 the trial court entered the Order and Final Judgment,
the Order Approving the Plan of Allocation and the Order on Plaintiffs’
Motion for an Award of Attorneys’ Fees and Reimbursement of Expenses
Out of Settlement Fund and an Award to the Plaintiff.
For
detailed information concerning the Settlement, please refer to the
following documents:
If you
have questions regarding this action or the settlement, please contact
us. Please DO NOT contact Court personnel. They
will not be able to respond to your questions.
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