IndyMac Bank, F.S.B.
On January 19, 2011, the Honorable Dean D. Pregerson granted final approval of the Class Action Stipulation and Agreement of Settlement (“Settlement Agreement”).
The Consolidated Complaint was filed in the United States District Court Central District of California. This litigation is on behalf of Plaintiffs and a Class of all persons who were participants in or beneficiaries of the IndyMac Bank, F.S.B., 401(k) Plan (the “Plan”) between July 1, 2006 and June 1, 2010, (the “Class Period”) and whose accounts included investments in IndyMac Bancorp, Inc. (“IndyMac”) common stock.
In the Consolidated Complaint, Plaintiffs allege that during the Class Period, Defendants breached their fiduciary duties to Plaintiffs and the Class by failing to
- prudently and loyally manage the Plan’s investment in IndyMac stock;
- properly monitor the performance of their fiduciary appointees and remove and replace those whose performance was inadequate;
- disclose necessary information to co-fiduciaries;
- provide complete and accurate information to the Class regarding the soundness of IndyMac stock and the prudence of investing and holding retirement contributions in IndyMac equity; and
- prevent breaches by other fiduciaries of their duties of prudent and loyal management, complete and accurate communications, and adequate monitoring.
On October 7, 2008, Judge Pregerson consolidated the various pending ERISA cases and appointed Keller Rohrback L.L.P. as Interim Co-Lead Counsel.
The settlement provides for a payment of $7 million, net of expenses described in the Settlement Agreement, to the Plan for the benefit of the following Settlement Class:
A non-opt-out class of all persons other than Defendants and Defendants’ spouses, parents, or children who were participants in or beneficiaries of the IndyMac Bank, F.S.B. 401(k) Plan at any time between July 1, 2006, and June 1, 2010, and whose accounts included investments in the IndyMac Stock Fund.
On January 10, 2011, the District Court held the Fairness Hearing and considered Plaintiffs’ requests for final approval of the Settlement Agreement, class certification, approval of a proposed plan of allocation, an award of attorneys’ fees and expenses, and service awards to Plaintiffs. After taking the matters under submission, on January 19, 2011, the Court entered the Final Order and Judgment approving Plaintiffs’ motions. The appeals deadline in this matter is February 18, 2011. If no appeal is filed, the settlement will become final.
Case and Settlement Documents
For additional information regarding the Settlement, please visit the In re IndyMac ERISA Litigation Settlement website at: www.gcginc.com/cases/idm.