News

Wells Fargo Mutual Fund Fee Litigation

US District Court Judge Paul A. Magnuson has appointed McTigue & Veis LLP Lead Class Counsel in an ERISA class action now pending in the US District Court for the District of Minnesota. In the case, Figas v. Wells Fargo, et al, 08-04546, Plaintiff Robin Figas has alleged that Wells Fargo violated its fiduciary duties under Federal pension law by directing the assets of participants in the Wells Fargo & Company 401(k) Plan (the “Plan”) into high-fee, low-performance mutual funds managed by affiliates of Wells Fargo.

McTigue & Veis, along with co-counsel Bailey & Glasser LLP, has been named Lead Counsel for a class of Plaintiffs that includes all Participants in the Wells Fargo & Company 401(k) Plan whose Plan accounts had a balance in certain Wells Fargo mutual funds from November 2, 2001, to September 22, 2009. If you are a participant in the Plan and would like to determine whether or not you may be a member of the class, you may call the firm at 202-364-6900 or contact us by e-mail here.

Wells Fargo Second Amended Complaint

Read the BNA Pension & Benefits Article:
Class Action Certified Against Wells Fargo On Claims Tied to Affiliate's Mutual Funds

In re Delphi Corporation, et al., Bankruptcy Litigation

February 17, 2009 -- McTigue & Veis LLP (formerly McTigue & Porter) filed a motion today in U.S. Bankruptcy Court in Manhattan seeking to stop auto parts manufacturer Delphi Corporation from unilaterally terminating health care benefits for thousands of the company's retirees.

Delphi, which declared bankruptcy in 2005, has asked the Court for permission to end employer-paid health care benefits for non-union retirees as a cost-cutting measure in advance of its expected emergence from bankruptcy later this year. If the Court grants Delphi’s request, the company would be free to terminate health care benefits for about 15,000 of its retirees.

McTigue & Veis, in association with the St. Louis law firm of Spencer Fane Britt & Browne LLP, asked the Court to deny Delphi’s request and establish an official committee to represent the retirees before the Bankruptcy Court and negotiate an equitable resolution to the dispute.

If you are a Delphi retiree, or if you would like additional information, please call McTigue & Veis at 202-364-6900, or you may contact the firm by e-mail here. Please be sure to include your full name and a telephone number where you may be reached.

Bank of New York and Callan Associates

judge approves MOTION FOR FINAL Approval of SETTLEMENT FILED IN Class Action Lawsuit against California Pension Advisor & N.Y. Brokerage

Judge Richard Berman has approved the Motion for Final Approval of the Settlement Agreement in Beane v. Bank of New York Mellon, et al., 07-09444, a class action lawsuit filed by McTigue & Veis LLP alleging that pension investment consultant Callan Associates, Inc. violated federal pension law by failing to disclose a contractual relationship under which Callan received payments for steering business to the brokerage arm of the Bank of New York Mellon.

Callan Associates (Callan) is a pension consulting firm headquartered in San Francisco. Callan is one of the largest pension investment advisors in the United States. Callan’s clients include hundreds of private pension and retirement plans who contract with Callan for a variety of services, including advice on how, with whom, and through which brokers to invest the pension plans’ assets. Bank of New York Mellon is a financial services conglomerate, providing banking, brokerage and other services.

In 1998, Bank of New York bought Callan’s brokerage division, Alpha Management Inc., and integrated it into its own brokerage subsidiary, later renamed BNY Brokerage. The Complaint, filed in the US District Court for the Southern District of New York in October 2007, alleged that, under the terms of that deal, “Callan repeatedly recommended BNY Brokerage to its pension plan clients because Callan received kickbacks from BNY Defendants for steering clients to BNY Brokerage.”

The complaint further alleged that Callan was obligated to disclose the terms of its arrangement with BNY brokerage to Callan’s private pension plan clients. The failure to do this, it is alleged, constitutes a breach of fiduciary duty and violates the Employee Retirement Income Security Act (ERISA), the federal law governing the management of pension plans.

To contact us regarding this or any other matter, please go here.

federal mogul corporation

$12.75 Million Settlement Reached in federal mogul ERISA Litigation

July 13, 2007 — United States District Court Judge Avern Cohn today granted final court approval to a $12.75 million settlement in Sherrill v. Federal Mogul Corp. Retirement Programs Committee, et al. The settlement will be used to offset financial losses suffered by participants in and beneficiaries of the Federal Mogul Corporation Salaried Employees Investment Plan. McTigue & Veis LLP served as co-lead counsel for the plaintiffs in the suit.

The Complaint in the the Federal Mogul ERISA litigation was filed in 2003 in the U.S. District Court for the Southern District of Illinois. The case was subsequently transferred to the U.S. District Court for the Eastern District of Michigan. In the Complaint Plaintiffs alleged that participants in the Federal Mogul Corporation Salaried Employees Investment Plan suffered significant financial losses as a consequence of mismanagement of the Plan by Federal Mogul during the period preceding the auto parts manufacturer's Bankruptcy. Federal Mogul filed for Chapter 11 bankruptcy protection in October 2001.

CMS Energy corporation

$28 Million Settlement Reached in CMS Energy Corporation ERISA Litigation

May 1, 2006 — United States District Court Judge George Caram Steeh has granted preliminary court approval of a $28 million settlement in the CMS ERISA Litigation. The settlement will be used to offset financial losses suffered by plaintiffs in the suit. McTigue & Veis LLP served as co-lead counsel for the plaintiffs.

Notice of the settlement was mailed to plaintiffs on May 1, 2006, and a final Fairness Hearing will be held on June 15, 2006. At that time, Judge Steeh will determine whether to grant final approval of the settlement.

The Complaint In re CMS Energy ERISA Litigation was filed in the U.S. District Court for the Eastern District of Michigan in July of 2002 on behalf of a “Class” of Plaintiffs comprised of participants and beneficiaries of the Employees’ Savings Plan of Consumers Energy Company. The Complaint alleges that Savings Plan participants suffered significant financial losses as a consequence of mismanagement of the Plan by CMS and a failure by its designated fiduciaries to fulfill their duties under federal pension law, including:

failing to prudently and loyally manage the Plan’s assets;
failing to provide participants with complete and accurate information regarding CMS stock sufficient to advise participants of the true risks of investing their retirement savings; and,
failing to properly monitor the performance of their fiduciary appointees, and remove and replace those whose performance was inadequate.

For details regarding the settlement and the rights of class members, please see the attached notices. To contact us regarding this or any other matter, please go here.

CMS Settlement Summary.pdf
CMS Settlement Notice.pdf
CMS Fee Petition.pdf
Amended Plan of Allocation.pdf
Order & Final Judgement.pdf