BB&T Corporation 401(k) Class Action Settlement

BB&T Corporation recently agreed to pay $24 million to resolve claims that the company mismanaged an employee retirement plan.

The settlement will benefit individuals who were former and current participants or beneficiaries of the BB&T Corporation 401(k) Savings Plan and had an active account between Sept. 4, 2009 and Oct. 25, 2018.

By agreeing to pay the $24 million, BB&T Corporation will resolve two Employee Retirement Income Security Act class action lawsuits that were consolidated in November 2015.

In the BB&T class action lawsuits, plaintiffs claimed that BB&T violated their fiduciary duties under ERISA by engaging in self-serving investments using employee retirement funds.

“By acting for their own or others benefit rather than solely in the interest of Plan participants, and failing to adequately consider the use of non-proprietary products and services and other low-cost options available to the Plan, Defendants breached their fiduciary duties of loyalty and prudence, and engaged in transactions expressly prohibited by ERISA,” the BB&T class action lawsuit states.

The company does not admit any wrongdoing in settling the claims against them. Instead, the settlement will provide both monetary relief to current and former plan participants as well as administrative changes to prevent unlawful practices within the business.

“We are pleased to have resolved the claims involving supervision of our 401(k) plan and believe a voluntary settlement is the best way for all parties to move forward, avoid a costly trial and further extend an already lengthy litigation process,” said BB&T’s vice president of corporate communications in a statement to Law360.

Current participants of the plan are not required to submit a Claim Form to receive benefits. However, former participants will need to submit a Claim Form by April 22, 2019 in order to receive compensation. Personal information is required to verify the claim, but other proof is not required.

The amount received by each Class Member will depend on the number of valid claims filed. Each claimant’s average quarterly balance will also be used to determine what fraction of the net settlement fund they will receive.

In addition to providing a $24 million settlement fund, BB&T has also agreed to hire an investment consultant who is not affiliated with the company to give an unbiased evaluation of BB&T’s investment options.

The objection date for the settlement is April 1, 2019. If Class Members wish to object to the terms of the settlement, they must send a statement to the court, Class Counsel, and defendant counsel by the objection date.

Who’s Eligible

Current and former participants and beneficiaries in the BB&T Corporation 401(k) Savings Plan and had an active account between Sept. 4, 2009 and Oct. 25, 2018.

Potential Award

Each claimant’s share of the settlement will be calculated by their average quarterly balances for the relevant period. The payment amount will depend on the amount of the net settlement fund left after costs and fees.

The Plan of Allocation is as follows:

“1. The quarterly balances for the Class Period of Current and Authorized Former Participants invested in Proprietary Funds will be identified for each quarter;

2. All quarterly balances identified in step 1 will be summed together for each Participant;

3. An average quarterly balance for each Current Participant and each Authorized Former Participant will be calculated for the Class Period;

4. For each Current Participant and each Authorized Former Participant, the average quarterly balance of step 3 will be divided by the average quarterly balance for the Class Period of all Current and Authorized Former Participants;

5. Each Current Participant and each Authorized Former Participant will receive the fraction of the total Net Settlement Amount which is calculated in step 4.”

Proof of Purchase

Personal identifying information (birth date, SSN info, etc.)

Claim Form

CLICK HERE TO FILE A CLAIM »

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

4/22/2019

Case Name

Sims, et al. v. BB&T Corporation, et al., Case No. 1:15-cv-732, in the U.S. District Court for the Middle District of North Carolina

Final Hearing

5/1/2019

Settlement Website

www.BBT401kSettlement.com

Claims Administrator

BB&T 401(k) Settlement Administrator
c/o Analytics Consulting LLC
P.O. Box 2007
Chanhassen, MN 55317-2007
1-877-755-0338

Class Counsel

SCHLICHTER BOGARD & DENTON LLP

Defense Counsel

GROOM LAW GROUP

WOMBLE BOND DICKINSON US LLP