Jackson National Agrees to $4.5M ERISA Class Action Settlement

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A Jackson National class action lawsuit might be coming to a close as both parties asked the court to approve a $4.5 million settlement and certify a Class that includes more than 5,000 people.

The Jackson National class action lawsuit was filed based on claims that the insurance company profited illegally from selecting proprietary funds to be used in the defined contribution plan for retirement.

The Jackson National class action lawsuit argues that the plan participants were disadvantaged as a result of these selections.

Plan participants argue that the company violated the Employee Retirement Income Security Act.

The Jackson National class action suit also accuses the company of violating the duties of loyalty and prudence under the statute by using high-cost proprietary funds in their retirement plan that cost the participants while benefitting the company’s bottom line.

In addition to this proposed settlement for the Jackson National class action lawsuit, the insurance carrier also agreed to hire an independent fiduciary to review the situation and determine whether or not to authorize such a settlement under current ERISA laws.

It’s expected that the Jackson National class action lawsuit settlement will also include a portion for attorneys’ fees and costs to represent the plaintiff as well as a requested payment of $5,000 for the named plaintiff.

Jackson National said in response to the proposed settlement that plan changes had already been implemented at the company such as eliminating fee structures and investment options that formed the basis of the lawsuit.

The company said, therefore, that no additional changes would be made to the plan based on the Jackson National class action settlement.

The Jackson National class action settlement is supported by the Class Members following a round of negotiations and the fact that sufficient monetary relief would be available to those affected.

The experts used by the Class Members to calculate total damages determined an amount just over 50 percent higher than the suggested settlement.

Participants in the Jackson National class action lawsuit say that continued litigation could be expensive as well as risky given the potential immediate resolution available in the settlement.

In the lawsuit, Jackson National argues that all of the claims were barred due to a statute of limitations and that the named plaintiff lacked standing, giving support to the Class Members to move forward with the proposed settlement amount as it stands.

The Class Members also requested as part of the settlement that they be certified as a Class.

The included Class Members would be all beneficiaries and participants in the retirement plan program who had investments tied up with Jackson National funds during the class period.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

The proposed Class is represented by Todd Schneider, Garrett W. Wotkyns and John J. Nestico of Schneider Wallace Cottrell Konecky Wotkyns LLP.

The Jackson National ERISA Class Action Lawsuit is Matthews Pease v. Jackson National Life Insurance Co., Case No. 1:17-cv-00284, in the U.S. District Court for the Western District of Michigan.

UPDATE: March 2019, a website has been set up to let Class Members know about their rights under a Jackson National Insurance ERISA class action lawsuit. Learn more here.