Welcome to the El Paso ERISA Settlement Website.
Welcome to the William H. Lewis, III and Keith Brodie v. El Paso Corporation, et al. Class Action Settlement website. This website has been established to keep class members informed about the Litigation and Settlement.
Settlement Distribution Is Complete
Lead Counsel is pleased to announce that the El Paso Energy Corporation Retirement Savings Plan ("Plan") trustee has completed the process of depositing each eligible Settlement Class Member's portion of the Settlement into his/her individual Plan account. Settlement Class Members who are eligible to receive a portion of the Settlement proceeds and no longer participate in the Plan have had accounts created by the Plan trustee. These accounts were created specifically to receive the deposit of such Settlement Class Member/former participant's portion of the Settlement Fund proceeds. Settlement Class Members who received a portion of the Settlement proceeds may verify the amount of their allocation on their next quarterly Plan statement or by contacting the El Paso Benefits Service Center at 866-301-2359. Questions regarding the Plan of Allocation calculations or the Settlement in general should be directed to Lead Counsel.
In March 2004, Named Plaintiffs William H. Lewis, III and Keith Brodie ("Plaintiffs"), on behalf of themselves and the Class, filed a Consolidated Complaint for Breach of Fiduciary Duty under the Employee Retirement Income Security Act of 1974 ("ERISA"). In the Complaint, Plaintiffs claimed that Defendants breached their fiduciary duties under ERISA by continuing to allow the investment of the El Paso Energy Corporation Retirement Savings Plan (the "Plan") assets in El Paso company stock during the Class Period even though El Paso stock was an imprudent investment. The Court preliminarily approved certification of this action for settlement purposes, naming Plaintiffs Lewis and Brodie as the Class Representatives.
The Defendants in this Action are El Paso Corporation (the "Company"), William A. Wise, Douglas L. Foshee, Ronald L, Kuehn, Jr., Jeffrey I. Beason, H. Brent Austin, D. Dwight Scott and Joel Richards, III. The Defendants deny any wrongdoing. The Court has not ruled in favor of either side. Both sides agreed to the settlement to ensure a resolution, avoid the cost and risk of continued litigation, and/or to provide a recovery to Class Members.
The Settlement provides for class certification under the Federal Rules of Civil Procedure as a "non opt-out" class action because of the way ERISA operates. Thus, it is not possible for any participants or beneficiaries to exclude themselves from the Settlement. As a Settlement Class Member, you will be bound by any judgments or orders that are entered in the Action for all claims that were or could have been asserted in the Action or are otherwise included in the release under the Settlement. Class Members include the following:
ALL PARTICIPANTS IN THE EL PASO CORPORATION PLAN, TOGETHER WITH THEIR BENEFICIARIES, FOR WHOSE INDIVIDUAL ACCOUNTS THE PLAN PURCHASED, SOLD, EXCHANGED, ACQURIED, ACCEPTED, DISPOSED OF, TRANSFERRED, HELD OR MADE ANY OTHER INVESTMENT DECISION REGARDING INVESTMENTS IN COMPANY STOCK DURING THE PERIOD FROM NOVEMBER 9, 2000 THROUGH MARCH 11, 2004. EXCLUDED FROM THE CLASS ARE DEFENDANTS AND MEMBERS OF THEIR IMMEDIATE FAMILIES.
The Defendants have agreed to create a settlement fund of $17 million dollars, plus interest, to be divided among eligible Class Members, after compensation payments to the Named Plaintiffs, payment of any Court-approved attorneys' fees and payment of other costs and expenses of the Settlement. The Settlement also calls for certain structural changes to the Plan, which are described in greater detail in the Settlement Agreement. This Settlement releases certain claims against the Company and the individual Defendants with respect to the investment of the Plan's assets in Company stock during the Class Period.
On February 23, 2009, the Court issued an order granting preliminary approval of the Settlement. At the Fairness Hearing, to be held on April 27, 2009 at 3:30 p.m., the Court will decide whether to approve the Settlement. The Court will also decide whether to grant Plaintiffs' Counsel's application for an award of attorneys' fees', reimbursement of expenses and Named Plaintiff Case Contribution Awards. To date, Plaintiffs' Counsel have not received any payment for their services in prosecuting this Action on behalf of the Settlement Class, nor have counsel been reimbursed for their out-of-pocket expenses.
If you have any questions about William H. Lewis, III and Keith Brodie v. El Paso Corporation, et al., please send an email to: ElPasoERISAsettlement@btkmc.com. This e-mail will go to the law office of Barroway Topaz Kessler Meltzer & Check, LLP and will be directed to the individuals handling the Settlement. Plaintiffs' Counsel has also set up a toll free number, 1-866-396-7024, if you prefer to call with your questions.