American Airlines 401(k) Class Action Settlement

UPDATE: The American Airlines 401(k) Class Action Settlement was granted final approval on February 21, 2018. Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.

American Airlines, Inc. has reached a $22 million class action settlement over claims it mismanaged certain employees’ 401(k) plans in violation of the Employee Retirement Income Security Act (ERISA).

If you participated in the American Airlines 401(k) Plan, formerly known as $uper $aver, between 2010 and 2015, you may be eligible to claim up to 10 times the dollar amount of the account balance that was invested in the disputed investments during the Class Period.

The American Airlines 401(k) settlement resolves a class action lawsuit (Main v. American Airlines) that alleges the airline breached its fiduciary duties and engaged in “unlawful self-dealing” by loading its 401(k) Plan with mutual funds offered by a company which it has financial ties to, instead of using lower-fee, better-performing funds offered by companies not affiliated with American Airlines.

The company in question, American Beacon Funds, was formerly called American AAdvantage Funds and was founded by American Airlines’ former parent company, AMR Corp. in 1986. In 2008, AMR sold the company for $480 million to Lighthouse Holdings, Inc., and obtained an ownership stake in Lighthouse Holdings.

The class action lawsuit claims that as part of the deal (and in return for this sizeable consideration), it was agreed that “American Beacon will continue to provide… investment management services for American Airlines pension, 401(k) and other health and welfare plans,” according to a press release cited in the complaint.

Plaintiffs assert that since the sale of American Beacon, approximately half of the 401(k) Plan’s designated investment alternatives have been American Beacon Funds. Thirteen of these investments remained in the Plan until the fall of 2015, when the Plan was overhauled and every American Beacon fund was removed.

“Not coincidentally, the Plan overhaul occurred approximately three months after Light House Holdings, Inc. sold its interest in American Beacon Funds in a deal that closed in the second quarter of 2015,” plaintiffs allege.

According to the American Airlines class action lawsuit, the selection of American Beacon Funds over better alternatives cost employees tens of millions of dollars between the start of the Class Period in 2010 and funds’ removal from the Plan in 2015.

The defendants deny the allegations and any wrongdoing but agreed to a class action settlement to avoid the uncertainty and risks of litigation.

Who’s Eligible

Class Members of the American Airlines 401(k) settlement are defined as:

All persons who participated in the American Airlines, Inc. 401(k) Plan, formerly known as $uper $aver, a 401(k) Capital Accumulation Plan for Employees of Participating AMR Corporation Subsidiaries (the “Plan”), whose Plan account included an investment in the American Beacon Funds or Non-American Beacon Mutual Funds (the “Disputed Investments”) at any time between April 15, 2010 and October 30, 2015 (the “Class Period”).

Potential Award

Varies.

The amount, if any, that will be paid out to eligible Class Members will be based upon records maintained by the Plans’ recordkeepers. The Settlement Administrator will calculate the individual distributions based upon a Court-approved Plan of Allocation.

The Net Settlement Amount will be divided pro rata among Class Members based upon whether they are a “Current Participant” or an “Authorized Former Participant,” and based on each eligible Class Member’s weighted account balance invested in the Disputed Investments during the Class Period. There are approximately 103,000 Class Members.

Each Class Member’s weighted account balance will be determined like this:

• Account balances in American Beacon Funds will be weighted at a rate of 10 times the dollar amount invested.
• Account balances in Non-American Beacon Mutual Funds will be weighted at a rate of 1 times the dollar amount invested.

Note: if you are an Alternate Payee pursuant to a Qualified Domestic Relations Order, your portion of the American Airlines 401(k) class action settlement will be distributed pursuant to the terms of that order.

Further details can be found under Questions 4 and 5 of the Settlement Notice.

Proof of Purchase

Class Members have been identified by records maintained by the Plans’ recordkeepers. If you did not receive a Settlement Notice and believe you are eligible, you can write the Settlement Administrator at the address listed below.

Claim Form

Class Members identified as a “Current Participant” do not need to do anything to receive their share of the settlement.

Class Members identified as a “Former Participant” who did not have an Active Account in the Plan as of July 7, 2017, or are the beneficiary, alternate payee, or attorney-in-fact of such a person, must mail a Former Participant Claim Form postmarked on or before February 12, 2018 to receive a share of the Net Settlement Amount. If you miss this deadline, you will forfeit your share of the settlement.

CLICK HERE TO DOWNLOAD A FORMER PARTICIPANT CLAIM FORM»

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

2/12/2018

Case Name

Whitney Main, et al., v. American Airlines, Inc., et al., Case No. 4:16-cv-00473-O, Northern District of Texas.

Final Hearing

1/24/2018

Settlement Website

www.AASuperSaver401KSettlement.com

Claims Administrator

American Airlines 401(k) Plan Settlement Administrator
P.O. Box 2002
Chanhassen, MN 55317-2002

855-755-4673

Claims@AASupersaver401kSettlement.com

Class Counsel

Kai H. Richter
Carl F. Engstrom
Paul Lukas
Brandon T. McDonough
Brock J. Specht
NICHOLS KASTER, PLLP

Joe Kendall
Jody Rudman
KENDALL LAW GROUP LLP

Defense Counsel

Shannon Barrett
O’MELVENY & MYERS LLP

Jonathan Neerman
JACKSON WALKER L.L.P