Charles Baird and Lauren Slayton, as individuals, and on behalf of the BlackRock Plan Class v. BlackRock Institutional Trust Company, N.A.; BlackRock, Inc.; The BlackRock, Inc. Retirement Committee; The Investment Committee of the Retirement Committee; The Administrative Committee of the Retirement Committee; The Management Development & Compensation Committee; Catherine Bolz, Chip Castille, Paige Dickow, Daniel A. Dunay, Jeffrey A. Smith; Anne Ackerley, Amy Engel, Nancy Everett, Joseph Feliciani Jr., Ann Marie Petach; Michael Fredericks, Corin Frost, Daniel Gamba, Kevin Holt, Chris Jones, Philippe Matsumoto, John Perlowski, Andy Phillips, Kurt Schansinger, Tom Skrobe; Kathleen Nedl; Marc Comerchero, Joel Davies, John Davis, Milan Lint, and Laraine McKinnon
Published: May 14, 2021 | Result Date: Mar. 23, 2021 | Filing Date: Apr. 5, 2017 |Case number: 4:17-cv-01892-HSG Settlement – $9,600,000
Judge
Court
USDC Northern District of California
Attorneys
Plaintiff
Michelle C. Yau
(Cohen, Milstein, Sellers & Toll PLLC)
Mary J. Bortscheller
(Cohen, Milstein, Sellers & Toll PLLC)
Daniel R. Sutter
(Cohen, Milstein, Sellers & Toll PLLC)
Todd F. Jackson
(Feinberg, Jackson, Worthman & Wasow LLP)
Nina R. Wasow
(Feinberg, Jackson, Worthman & Wasow LLP)
Defendant
Brian D. Boyle
(O'Melveny & Myers LLP)
Adam M. Kaplan
(O'Melveny & Myers LLP)
Randall W. Edwards
(O'Melveny & Myers LLP)
Meaghan M. VerGow
(O'Melveny & Myers LLP)
Facts
Plaintiffs Charles Baird and Lauren Slayton sought to certify two classes of BlackRock's retirement plan participants. The first proposed class alleged Blackrock paid itself excessive securities-lending fees by keeping 50 percent of securities-lending income for itself and paying itself excessive cash-management fees from the assets of six short-term investment funds. The other proposed class included employees who participated in the company's 401(k) plan, and they alleged that BlackRock selected its own plans, even when those plans were underperforming and others were more lucrative. The judge did not certify the first proposed class.
Contentions
PLAINTIFFS' CONTENTIONS: Plaintiffs contended that defendants violated the Employee Retirement Income Security Act when defendants cost workers and retirees millions in unreasonable 401(k) plan fees and bad investment decisions.
DEFENDANTS' CONTENTIONS: Defendants denied the contentions. Defendants contended that the ERISA claims were time-barred.
Result
Settled for $9,600,000.
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