If You Are A Current Or Former Participant Or Beneficiary Of The National City Savings And Investment Plan (The “Plan”) (A) For Whose Individual Account 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 Account In The Plan Held Interests In Any Allegiant Funds At Any Time During The Period March 25, 2002 To December 31, 2009, Inclusive (“Settlement Class”), Your Rights May Be Affected By A Class Action Settlement.
A class action settlement has been reached in a class action lawsuit pending against National City, National City Bank, the Board of Directors of National City Corporation, the Administrative Committee of the National City Savings and Investment Plan, David A. Daberko, and Jon N. Couture (collectively “Defendants”) in the United States District Court for the Northern District of Ohio (styled In re National City Corporation Securities Derivative & ERISA Litigation, Civil Action No. 08-nc-70000), alleging, among other things, that Defendants violated the Employee Retirement Income Security Act of 1974 (“ERISA”) by, among other things, (1) permitting the Plan to purchase and hold shares of National City common stock from September 5, 2006 to December 31, 2008, inclusive, when it is alleged that Defendants knew or should have known it was imprudent to do so and (2) permitting the Plan to purchase and hold shares of certain proprietary mutual funds called Allegiant Funds (f/k/a Armada Funds) offered by National City from March 25, 2002 to December 31, 2009 when it is alleged that offering Allegiant Funds as investment alternatives in the Plan violated ERISA, according to the National City ERISA class action settlement notice.
The National City Savings & Investment Plan ERISA class action lawsuit complaint reportedly alleged, among other things, that:
- National City stock was an imprudent investment during the relevant period as a result of National City’s massive losses in connection with subprime lending, construction loans, home equity loans, and other highly risky lending practices;
- Defendants allowed the National City Savings & Investment Plan to maintain its investment in National City stock despite actual or constructive knowledge of National City’s alleged problems;
- Defendants allegedly disseminated inaccurate and misleading material information to National City Savings & Investment Plan participants regarding investment of Plan assets in National City stock and, additionally, withheld material information important in making informed investment decisions;
- Defendants, because of their positions as corporate insiders with a stake in National City (monetarily through National City equity ownership and personally through their positions at National City), had an interest in withholding information concerning National City’s alleged business and operational problems;
- Defendants allowed the National City Savings & Investment Plan to invest in Allegiant Funds and to purchase products and services from National City’s subsidiaries and affiliates on terms, and under circumstances, allegedly prohibited by ERISA; and
- Defendants knew or should have known that the National City Savings & Investment Plan was engaged in transactions which constituted sales or exchanges of property between the Plan and parties-in-interest in purported violation of ERISA.
The National City Savings & Investment Plan class action settlement provides that a Settlement Fund consisting of forty-three million dollars ($43,000,000) in cash is being established. The net amount in the
Settlement Fund, including accrued interest earned on the Settlement Fund but less any taxes, expenses, approved attorneys’ fees and
expenses, and compensation to the Named Plaintiffs, reportedly will be paid to the National City Savings & Investment Plan and then be allocated to Settlement Class members according to a Plan of Allocation to be approved by the Court.
The Court is scheduled to hold a settlement Fairness Hearing at noon on November 30, 2010 at the United States District Court for the Northern District of Ohio (Eastern Division), Carl B. Stokes United States Court House, 801 West Superior Avenue, Cleveland, OH 44113, Courtroom 19A or in the
courtroom then occupied by United States District Judge Solomon Oliver, Jr., to consider, among other things, whether the National City Savings & Investment Plan class action settlement is fair, reasonable, and adequate.
For more information on the National City Savings & Investment Plan ERISA class action lawsuit settlement and/or for updates on the National City ERISA class action settlement, visit the National City ERISA settlement website:
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