v. CASE NO. 01-CV-1552 (SRU)

Transcription

1 UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT LOU HADDOCK, as trustee of the Flyte Tool Die, Incorporated Deferred Compensation Plan, et al., PLAINTIFFS, v. CASE NO. 01-CV-1552 (SRU) NATIONWIDE LIFE INSURANCE CO., DEFENDANT. If you are a trustee of an employee pension benefit plan covered by ERISA which had variable annuity contracts with Nationwide Life Insurance Company, a class action lawsuit may affect your plan s rights. A federal court authorized this notice. This is not a solicitation from a lawyer. Neither you nor your plan is being sued. Trustees of four employee pension benefit plans have sued Nationwide Life Insurance Company ( Nationwide ) claiming it breached its fiduciary responsibilities to them when it arranged for, received and kept payments from mutual funds ( revenue sharing payments ) it offered to 401(k) and 403(b) plans as investment options. You may be part of this class action if you are the trustee of an employee pension benefit plan covered by the Employee Retirement Income Security Act ( ERISA ) [such plans are commonly known as 401(k) and 403(b) plans] which had variable annuity contracts issued by Nationwide or whose participants had individual variable annuity contracts issued by Nationwide at any time from January 1, 1996, to September 6, This case is still being litigated and will be scheduled to go to trial. There is no money available now, and no guarantee there will be. However, your plan s legal rights are affected, and you have a choice to make now. DO NOTHING ASK TO BE EXCLUDED YOUR LEGAL RIGHTS AND OPTIONS IN THIS LAWSUIT Stay in this lawsuit. Await the outcome. Share in the possible money or benefits. Give up your plan s right to sue separately. By doing nothing, you are choosing to stay in the lawsuit. You keep your right to possibly get money or benefits for your plan that may come from a trial or a settlement. But, you give up the right to sue Nationwide separately on behalf of your plan about the same legal claims in this lawsuit. Get out of this lawsuit. Get no money or benefit for your 401(k) or 403(b) plan from it. Keep your right to sue separately on behalf of your plan about the same legal claims in this lawsuit, or not to participate in any lawsuit. If you ask to be excluded and money or benefits are later awarded, your plan won t share in those. But, your plan keeps any rights to sue Nationwide separately about the same legal claims in this lawsuit. Lawyers must prove the claims against Nationwide at a trial. If you do not ask to be excluded from this lawsuit, you will be automatically notified if money or other benefits for your plan are obtained from Nationwide. Your options are explained in this notice. To be excluded, you must act by July 7, Any questions? Read on and visit or call QUESTIONS? GO TO or call NHWNOT2

2 WHAT THIS NOTICE CONTAINS BASIC INFORMATION... PAGE 3 1. Why did I get this notice? 2. What is this lawsuit about? 3. What is a class action and who is involved? 4. Why is this lawsuit a class action? THE CLAIMS IN THE LAWSUIT... PAGE 4 5. What does the lawsuit complain about? 6. How does Nationwide answer? 7. Has the Court decided who is right? 8. What are the Plaintiffs asking for on behalf of the Class? 9. Are there any benefits available now? MEMBERS OF THE CLASS... PAGE How do I know if my plan is included in the Class? 11. What if I am no longer the trustee of the 401(k) or 403(b) plan? 12. What if my address changes before the case is resolved? YOUR RIGHTS AND OPTIONS... PAGE What happens if I do nothing at all? 14. What happens if I ask to be excluded? 15. How do I ask to be excluded? THE LAWYERS REPRESENTING YOU... PAGE Do I have a lawyer in this case? 17. Should I hire my own lawyer? 18. How will the lawyers be paid? THE REST OF THE LAWSUIT... PAGE How and when will the Court decide who is right? 20. Do I have to come to Court? 21. Will my plan get money or benefits after the trial? GETTING MORE INFORMATION... PAGE How can I get more information? - 2 -

3 BASIC INFORMATION 1. Why did I get this notice? This notice is being provided because a Court has certified this case to move forward as a class action and your rights and the rights of your plan may be affected. Nationwide s records show that you and your plan may be included in this class action and you may have legal rights and options that you may exercise on behalf of your plan before the Court decides this case. Judge Stefan R. Underhill of the United States District Court for the District of Connecticut is overseeing this class action. The lawsuit is known as Lou Haddock, as Trustee of the Flyte Tool & Die Company Inc. 401(k) Profit-Sharing Plan, et al., v. Nationwide Life Insurance Company, Case No. 3:01-cv-1552 (SRU). The people who sued are called the Plaintiffs. The company they sued, Nationwide Life Insurance Company, is called Nationwide or Defendant. 2. What is this lawsuit about? The lawsuit claims that Nationwide became a fiduciary (someone with the duty of utmost good faith and fair dealing) under the Employee Retirement Income Security Act (ERISA) because it exercised authority or control over the management or disposition of the plans assets. It further claims that Nationwide breached those fiduciary duties to the plans by arranging for, receiving and keeping the revenue sharing payments made to it by the mutual funds it offered to the plans as investment options instead of distributing the payments to the 401(k) or 403(b) plans. 3. What is a class action and who is involved? In a class action lawsuit, one or more people called Class Representatives (in this case Peter Wiberg, Alan Gouse, Christopher Anderson and H. Grady Chandler) sue (as trustees of their plans) on behalf of all trustees of plans that have similar claims. Together, these people are a Class or Class Members. The individuals who sued--and all the Class Members like them--are called the Plaintiffs. One court resolves the issues for all Class Members, except for those people who choose to exclude themselves from the Class. 4. Why is this lawsuit a class action? The Court decided that this lawsuit could move toward trial as a class action because it meets the numerosity, commonality, typicality, and adequacy requirements of Federal Rule of Civil Procedure 23. For example, the Court ruled that the Class is so large or numerous that getting all Class Members together is impracticable; there are questions of law and fact that are common to the Class; the claims of the Class Representatives and the defenses to those claims by Nationwide are typical of the claims of the Class and the defenses to those claims by Nationwide; and the Class Representatives and the lawyers for the Class will fairly and adequately protect the interests of all Class Members. More information about why the Court is allowing this lawsuit to be a class action can be found in the Court s class certification ruling and order, both of which are available at

4 5. What does the lawsuit complain about? THE CLAIMS IN THE LAWSUIT The lawsuit claims that Nationwide became a fiduciary (someone with the duty of utmost good faith and fair dealing) under the Employee Retirement Income Security Act (ERISA) because it exercised authority or control over the management or disposition of the plans assets. It further claims that Nationwide breached those fiduciary duties to the plans by arranging for, receiving and keeping the revenue sharing payments. More information about the lawsuit can be found in the Class Action Complaint available at 6. How does Nationwide answer? Nationwide denies all the claims in this lawsuit. Nationwide believes that the industry-wide practice of mutual fund payments is well-known and lawful. Nationwide believes that the payments from the mutual funds have reduced the charges and expenses that plans and participants otherwise would have paid, and have permitted Nationwide to provide more investment choices and improved services. Nationwide says that it did not exercise authority or control over the disposition or management of the plans investments and thereby become a fiduciary to the plans. Nationwide says that it did not breach any fiduciary duty by arranging for and receiving the revenue sharing payments. 7. Has the Court decided who is right? No. The Court has not decided whether the Plaintiffs or Nationwide are correct. By establishing the Class and issuing this notice, the Court is not suggesting whether the Plaintiffs will win or lose this case. The lawyers for the Plaintiffs must prove the Class claims to the Court at a later date. 8. What are the Plaintiffs asking for on behalf of the Class? The Plaintiffs are asking the Court to order Nationwide to give all of the revenue sharing payments it has received to the Class. Plaintiffs are also asking that Nationwide pay for attorneys fees and costs. 9. Are there any benefits available now? No money or benefits are available now because the Court has not yet decided whether Nationwide did anything wrong, and the two sides have not agreed to settle the case. There is no guarantee that money or benefits ever will be awarded or obtained; however, if they are, you will be notified. 10. How do I know if my plan is included in the Class? MEMBERS OF THE CLASS If you received this notice in the mail, Nationwide s records show that you (as the trustee of a 401(k) or 403(b) plan) are included in the lawsuit as a Class Member. Specifically, the Class includes all trustees of all employee pension benefit plans covered by ERISA that had variable annuity contracts issued by Nationwide or whose participants had individual variable annuity contracts issued by Nationwide at any time from January 1, 1996, to September 6,

5 11. What if I am no longer the trustee of the 401(k) or 403(b) plan? If you are no longer a trustee of the 401(k) or 403(b) plan, please notify the Class Action Administrator in writing. In your letter, state the names, addresses and phone numbers of the current trustees of the 401(k) or 403(b) plan (if known). Please mail your letter to Haddock v. Nationwide Class Action Administrator, P.O. Box 43247, Providence, RI What if my address changes before the case is resolved? If your address changes before the case is resolved, please send a letter indicating the change to Haddock v. Nationwide Class Action Administrator, P.O. Box 43247, Providence, RI YOUR RIGHTS AND OPTIONS You have to decide whether to stay in the Class or ask to be excluded, and you have to decide this now. 13. What happens if I do nothing at all? If you do nothing, you are staying in the Class. This means that regardless of whether the Plaintiffs win or lose at trial you and your 401(k) or 403(b) plan will be legally bound by all orders and judgments of the Court. You will not be able to start a lawsuit against Nationwide (on behalf of your 401(k) or 403(b) plan) about the same legal claims included in this lawsuit. However, if money or benefits are awarded or obtained from Nationwide, either as a result of a summary judgment or a trial or a settlement, you will be automatically notified. 14. What happens if I ask to be excluded? If you exclude yourself, you and your plan will not be legally bound by the Court s orders and judgments. You will keep your right to sue Nationwide (on behalf of your 401(k) or 403(b) plan) for the same legal claims in a different lawsuit. However, you will not be able to get any money or benefits for your 401(k) or 403(b) plan from this lawsuit if any are awarded or obtained. If you exclude yourself so you can start your own lawsuit against Nationwide on behalf of your plan, you should talk to your plan s lawyer soon, because there may be a time limit on how long you have to file the suit for your plan. 15. How do I ask to be excluded? To exclude yourself and your 401(k) or 403(b) plan, please send a letter or postcard that says you wish to be excluded from the Class in the case of Lou Haddock v. Nationwide Life Insurance Company. Please include your full name, address, the name of your 401(k) or 403(b) plan and your signature. Mail your exclusion request so it is postmarked by July 7, 2014 to Haddock v. Nationwide Class Action Administrator, P.O. Box 43247, Providence, RI Do I have a lawyer in this case? THE LAWYERS REPRESENTING YOU Yes. The Court has appointed Marc R. Stanley and Martin Woodward of the Stanley Law Group (Dallas, Texas), Richard A. Bieder, Antonio Ponvert, III, and William M. Bloss of Koskoff, Koskoff & Bieder, P.C., (Bridgeport, Connecticut), Gregory G. Jones of the Law Offices of Gregory G. Jones (Grapevine, Texas), and Roger L. Mandel of Lackey Hershman, L.L.P. (Dallas, Texas) to represent you and other Class Members. Together these law firms are called Class Counsel. They are experienced in handling similar class action cases

6 17. Should I hire my own lawyer? You do not need to hire your own lawyer because Class Counsel are representing you and all of the other members of the Class. You can hire your own lawyer, who may appear in Court for you in this case. If you want someone other than Class Counsel to speak for you and your plan, you or your plan will have to pay those fees and expenses. 18. How will the lawyers be paid? If Class Counsel get money or benefits for the Class, they may ask the Court for fees and expenses. If the Court grants Class Counsel s request, the fees and expenses will either be deducted from any money obtained for the Class or paid separately by Nationwide. You and your plan won t have to pay these fees and expenses. 19. How and when will the Court decide who is right? THE REST OF THE LAWSUIT The case will be decided at a trial or through summary judgment at the United States District Court for the District of Connecticut, Brien McMahon Federal Building, United States Courthouse, 915 Lafayette Boulevard, Suite 411, Bridgeport, Connecticut After the case is decided, there could be appeals. It could take a long time before a final decision is made in this case. Please be patient. 20. Do I have to come to Court? No, you will not have to come to the trial unless you choose to do so. Class Counsel will present the case for Plaintiffs, and Nationwide will present its defenses. You or your plan s lawyer may appear in Court for this case at your or your plan s expense. 21. Will I get money or benefits after the trial? You will be automatically notified if Class Counsel obtains money or benefits as a result of summary judgment, trial or settlement. If the address provided on this notice is incorrect or your address changes before the case is resolved, please notify the Class Action Administrator as described in Question 12 above. 22. How can I get more information? GETTING MORE INFORMATION Visit the website, where you will find several court filings and orders that provide significant additional information. You may also call or write to Haddock v. Nationwide Class Action Administrator, P.O. Box 43247, Providence, RI