Northrop Grumman Retirement Plan Fees Class Action Settlement

An ERISA class action settlement has been reached that will benefit participants in two Northrop Grumman retirement plans.

The settlement resolves two consolidated class action lawsuits brought by several plaintiffs who allege they lost money from their retirement plans due to defendant Northrop Grumman’s violations of the federal Employment Retirement Security Income Act, or ERISA.

Plaintiffs in these actions are participants in two Northrop Grumman retirement plans: the Northrop Grumman Savings Plan, Plan 011, or “NGS Plan,” and the Northrop Grumman Financial Security and Savings Program, Plan 010, or “FSS Plan.”

According to the plaintiffs, plan administrators violated their rights under ERISA by distributing assets from these plans to Northrop Grumman employees. These distributions were characterized as plan administration expenses, distributed in exchange for services performed by those employees. Plaintiffs claim, however, that these distributions were prohibited under ERISA.

This Northrop Grumman retirement plan class action lawsuit has finally been resolved after nearly 11 years of litigation. It was filed in September 2006, went through an appeal in which the Ninth Circuit reversed the trial court’s denial of class certification, and went to trial in March 2017. The parties reached the current settlement after several days of trial.

Under the settlement’s terms, the defendants will create a settlement fund worth $16,750,000. This fund will be distributed to qualifying Class Members after deductions are made for administrative expenses, taxes and related expenses, compensation for the class representatives, and court-approved attorneys’ fees and court costs.

Class Members are divided into “current participants” and “former participants,” depending on whether or not they had an account with a positive balance as of June 23, 2017. Current participants do not need to make a claim to receive benefits and will receive their benefits directly deposited into their accounts.

Former participants must file a Claim Form with the settlement administrator by the claim deadline. They will receive benefits in the form of either a check or a direct deposit into a rollover account, if they have one.

Any Class Members who wish to object to the settlement must file a written objection by Sept. 22, 2017. Class Members do not have the option of excluding themselves from this settlement.

Who’s Eligible

Class Members are all persons who participated in or were beneficiaries of the Northrop Grumman retirement plans between Sept. 28, 2000 and May 11, 2009.

Potential Award

TBD

Class Members’ individual payments will be determined according to a Plan of Allocation to be approved by the court. See the class notices for more details on how payment amounts will be calculated.

Proof of Purchase

The settlement administrator does not request any proof of purchase or other documentation, other than the information and certifications requested on the Claim Form for former participants.

Claim Form

CLICK HERE TO FILE A CLAIM »

Only former participants need to file a Claim Form. Current participants will receive benefits automatically.

Claim Form Deadline

10/13/2017 for former participants

There is no claim deadline for current participants since they do not need to file a claim to receive benefits.

Case Name

In re: Northrop Grumman Corporation ERISA Litigation, Case No. 2:06-cv-06213-AB-JC, in the U.S. District Court for the Central District of California

This action consolidates two separate cases: Grabek, et al. v. Northrop Grumman Corporation, Case No. 06-CV-6213, and Heidecker, et al. v. Northrop Grumman Corporation, Case No. 07-CV-0153.

Final Hearing

10/23/2017

UPDATE: The Northrop Grumman Retirement Plan Fees settlement was granted final approval on October 24, 2017.  Let Top Class Actions know when you receive a check in the comments section below or on our  Facebook page.

Settlement Website

www.Northrop401kSettlement.com

Claims Administrator

Northrop Grumman 401(k) Settlement Administrator
P.O. Box 2007
Chanhassen, MN 55317-2007
866-604-2582

Class Counsel

Jerome J. Schlichter
Michael A. Wolff
Stephen M. Hoeplinger
Kurt C. Struckhoff
SCHLICHTER BOGARD & DENTON LLP

Defense Counsel

Nancy G. Ross
Brian D. Netter
Laura Hammargren
MAYER BROWN LLP