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In Re: Williams
Companies ERISA Litigation
(Civil Action No. 02-cv-153,
U.S. District Court, N.D. Oklahoma)
On November 16, 2005, the Court held a Fairness
Hearing and approved the Settlement of this case. The following three
orders were entered:
Keller Rohrback L.L.P. is Court-appointed Lead
Counsel for the Class in this case. Keller Rohrback attorneys Lynn
Lincoln Sarko, Laurie B. Ashton, and Cari Campen Laufenberg exercised
primary responsibility for this case. In the course of this litigation,
we worked closely with Washington D.C. based Associate Counsel and
Tulsa based Liaison Counsel.
The Allegations
This case concerns The Williams
Companies, Inc. Investment Plus Plan (the “Plan”). Plaintiff
sued the fiduciaries of the Plan, including Defendants: The Williams
Companies, Inc.; Benefits Committee Members: Keith Bailey, Jack D.
McCarthy, Michael Johnson, and Travis Campbell; Investment Committee
Members: Nick Bacile, John Bumgarner, Travis Campbell, R. Rand Clark,
James Ivey, Howard Kalika, Marcia MacLeod, Ron Mucci, Scott Welch, Mark
Wilson, Phillip D. Wright, Dan M. Miller, Lewis A. Posekany, Jr., Rick
Rodekohr, and Andrew Sunderman; and Board of Directors: Hugh M.
Chapman, Thomas H. Cruikshank, William E. Green, W.R. Howell, James C.
Lewis, Charles M. Lillis, George A. Lorch, Frank T. MacInnis, Steven J.
Malcolm, Gordon R. Parker, Janice D. Stoney, Joseph H. Williams, and
Ira D. Hall for violations of the Employee Retirement Investment
Security Act (“ERISA”). Plaintiffs allege that the Benefits Committee
Defendants and Investment Committee Defendants failed to prudently and
loyally manage the Plan’s assets; failed to provide participants with
complete and accurate information regarding WMB and WCG stock
sufficient to advise participants of the true risks of investing their
retirement savings; and, breached the duty to avoid conflict of
interest. Additionally, Plaintiffs allege that the Board of Directors
failed to properly appoint and monitor the performance of their
fiduciary appointees. Plaintiffs also allege that The Williams
Companies, Inc. failed to prudently manage Plan assets and breached its
duty to disclose to and inform Plan participants of material
information regarding the Plan’s investments in WMB stock and WCG stock.
The Case is a "Class Action"
This lawsuit was filed by Kristine Zeigler,
Michael Van Sickle, and Karen Raider on behalf of themselves and all
others similarly situated – basically all persons who were Plan
participants between July 24, 2000 and December 12, 2002 whose
Investment Plus Plan account balances were invested in Williams
Companies and Williams Communications Stock, as well as their
beneficiaries.
The Settlement
On September 28, 2005, the Court entered its Order
Preliminarily Approving Proposed Settlement, Approving Form and
Dissemination of Class Notice, and Setting Date for Hearing on Final
Approval.
In settlement of this case, the Defendants have
agreed to pay $55 million in cash, plus equitable relief in the form of
a covenant that Williams will not take any action to amend the Plan: to
(i) reduce the employer match thereunder below four (4) percent prior
to January 1, 2011; or (ii) require that the employer match be
restricted in Company stock prior to January 1, 2011.
You do not need to submit a claim form or any
documentation.
If you have questions regarding this action or the
settlement, beginning on October 7, 2005, you may contact us at
williamssettlement@gardencitygroup.com. Please DO
NOT contact the Court or The Williams Companies, Inc. They
will not be able to answer your questions.
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