Counsel for Plaintiffs: $36 Million Settlement Has Been Reached With Northern Trust Company and Northern Trust Investments, N.A.
The lawsuit alleges that Northern Trust breached its duties to retirement plans and their participants and beneficiaries. According to Plaintiffs, Northern Trust imprudently invested collateral received from securities lending activities and, in addition, charged impermissibly high fees. Northern Trust denies any liability.
The proposed settlement has been achieved on behalf of retirement funds that invested in Northern Trust’s Commingled Lending Funds, which participated in Northern Trust’s securities lending program, during the period January 1, 2007 through October 31, 2010. Plaintiffs brought suit under the Employee Income Security Retirement Act (“ERISA”).
The case is Diebold, et al. v. Northern Trust Investments, N.A. et al., No. 09-Civ-1934 (“Diebold”), pending before Judge Charles Norgle in the United States District Court for the Northern District of Illinois.
Final settlement in Diebold is conditioned on final approval of the partial settlement of a related case, Louisiana Firefighters’ Retirement System, et al. v. Northern Trust Investments, N.A., et al., Civil Action No. 09-7203A (“Louisiana Firefighters”), which is also pending in the Northern District of Illinois. Louisiana Firefighters asserts claims based on many of the same facts and circumstances underlying the claims in Diebold, but on behalf of entities that are not subject to ERISA.
Northern Trust has expressly denied and continues to deny all assertions of wrongdoing or liability against them arising out of any of the conduct, statements, acts, or omissions alleged, or that could have been alleged.
The Settlement Class, appointed by the Court, is represented by Bailey & Glasser, LLP, Berger Montague, and Peiffer Rosca Wolf Abdullah Carr & Kane, APLC.
Northern Trust is represented by Winston & Strawn LLP and Mayer Brown LLP.