Stull, Stull & Brody and Barroway Topaz Kessler Meltzer & Check, LLP Announce Settlement of Class Action Lawsuit Against National City Corporation
by Business Wire
Stull, Stull & Brody and Barroway Topaz Kessler Meltzer & Check, LLP:
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF OHIO
In re: National City Corporation Securities, Derivative & ERISA Litigation Case No. 08-nc-70000
TO ALL CURRENT AND FORMER PARTICIPANTS AND BENEFICIARIES OF THE NATIONAL CITY SAVINGS AND INVESTMENT PLAN (THE “PLAN”) (A) FOR WHOSE INDIVIDUAL ACCOUNTS THE PLAN PURCHASED AND/OR HELD INTERESTS IN THE NATIONAL CITY STOCK FUND AT ANY TIME DURING THE PERIOD SEPTEMBER 5, 2006 TO DECEMBER 31, 2008, INCLUSIVE; OR (B) WHOSE INDIVIDUAL ACCOUNTS IN THE PLAN HELD INTERESTS IN ANY OF THE MUTUAL FUNDS OF ALLEGIANT ASSET MANAGEMENT COMPANY (FORMERLY KNOWN AS “ARMADA FUNDS”) OFFERED AS INVESTMENT ALTERNATIVES IN THE PLAN. (THE “ALLEGIANT FUNDS”) AT ANY TIME DURING THE PERIOD MARCH 25, 2002 TO DECEMBER 31, 2009, INCLUSIVE (“SETTLEMENT CLASS”).
PLEASE READ THIS NOTICE CAREFULLY. A FEDERAL COURT AUTHORIZED THIS NOTICE.
THIS IS NOT A SOLICITATION. YOU ARE NOT BEING SUED.
A Settlement has been preliminarily approved by a federal court in a consolidated class action lawsuit against National City Corporation (“National City” or the “Company”), certain of its former officers and directors and others alleging breaches of fiduciary duties under the Employee Retirement Income Security Act of 1974 (“ERISA”). All capitalized terms not otherwise defined in this Summary Notice of Class Action Settlement have the meaning provided in the Class Action Settlement Agreement (the “Settlement Agreement”) available on the Settlement website identified in this notice. The Settlement will provide for a payment of $43 million to the Plan (minus Court-approved attorneys’ fees, certain expenses and case contribution awards to the Named Plaintiffs), which will then be allocated to the accounts of participants of the Plan who had portions of their Plan accounts invested in National City common stock or fund units in the National City Stock Fund at any time during the period September 5, 2006 to December 31, 2008 and to Plan participants who held Allegiant Funds in their Plan accounts at any time from March 25, 2002 to December 31, 2009. You will receive a payment if you qualify under a Court-approved Plan of Allocation. You do not need to send in a claim form or take any other action to participate in the Settlement. The United States District Court for the Northern District of Ohio (Eastern Division) authorized this Notice. If you were a member of the Settlement Class as defined above than you are included in the Settlement automatically.
The Named Plaintiffs claimed, among other things, that the Defendants breached their fiduciary duties under ERISA by allowing the investment of the Plan’s assets in National City common stock or National City Stock Fund units during a time when they knew or should have known that such investment was imprudent and by other related acts, and that Defendants breached their fiduciary duties by allowing the Plan to invest in Allegiant Funds in violation of ERISA. All Defendants deny all wrongdoing.
Defendants have agreed to create a Settlement Fund of $43 million to be divided among eligible Settlement Class Members after payment of attorneys’ fees and expenses to Class Counsel and Case Contribution Awards to the Named Plaintiffs, and payment of other costs and expenses of the Settlement, including notice and Settlement administration, as the Court may allow. The Settlement Agreement and long-form Class Notice, available along with other related documentation and a list of Frequently Asked Questions at the website identified below, describes the details of the proposed Settlement. The Settlement releases certain claims relating to the investment of the Plan’s assets in National City common stock or common stock fund units and claims related to the Plan’s offering of Allegiant Funds during the time periods listed above.
If you are a Settlement Class member and are entitled to a share of the Settlement Fund according to the Settlement Agreement, you are not required to do anything to receive a payment. The payment will be made directly to your Plan account(s). If you no longer are a participant in the Plan, a Plan account will be established for you and you will be notified of this account along with further instructions. If your address has changed since you closed your Plan account(s), please contact Class Counsel toll-free at 866-828-2555 to advise of the change of address.
You cannot opt out of the Settlement, but you may object to all or any part of the Settlement in accordance with the Class Notice. You will be bound by any judgments or orders that are entered in this Action, and if the Settlement is approved, you will be deemed to have released all of the Defendants from all claims that were or could have been asserted in this case.
The Court will hold a hearing in this case on November 30, 2010 at noon in the Courtroom of United States District Judge Solomon Oliver, Jr., United States District Court for the Northern District of Ohio (Eastern Division), Carl B. Stokes United States Court House, 801 West Superior Avenue, Cleveland, Ohio 44113-1838, to consider whether to approve the Settlement and any motion(s) by the lawyers representing Settlement Class members for attorneys’ fees, reimbursement of expenses and Case Contribution Awards to the Named Plaintiffs, and for other case-related expenses. If approved, these amounts will be paid from the Settlement Fund. You may ask to speak at the hearing by filing a notice of your intention to appear, but you are not required to appear at the hearing.
This notice summarizes the proposed Settlement. If you are a Settlement Class member and would like to receive additional information or to receive a copy of the long form Class Notice, which more completely describes the Settlement and your rights thereunder (including your right to object to the Settlement), please call toll-free 866-828-2555 or visit www.NationalCityERISASettlement.com.