Frequently Asked Questions

This page provides the answers to class members’ most frequently asked questions.

The information provided is in summary form and is not intended as a complete explanation of your rights. For full and complete information, you are directed to review carefully the Notice of Class Action Settlement.

What is this lawsuit about?

The Named Plaintiffs claim that Defendants breached fiduciary duties of prudence and loyalty owed to participants in and beneficiaries of the Plan. They made this claim under a federal law known as “ERISA,” or the Employee Retirement Income Security Act. The Named Plaintiffs claim that Defendants allowed the Plan to pay unreasonably high fees for investment options and recordkeeping services. In simple terms, “recordkeeping” refers to administrative services provided to retirement plan participants, such as providing account statements or a participant website.

Defendants deny all of the claims and allegations in the Action and deny that they ever engaged in any imprudent, disloyal, or otherwise wrongful conduct. If the Action were to continue, the Defendants would continue to assert defenses, including:

Defendants did not engage in any of the allegedly improper conduct charged in the Complaint;
Defendants reasonably and prudently managed the Plan’s investment options and fees, as well as all recordkeeping fees, and fulfilled all of their fiduciary obligations;
The Plan’s investment options were and are reasonable, prudent, and sound investment options for Plan participants;
The Plan’s investment options and recordkeeping services were not selected or retained for the purpose of benefiting Defendants or a third party;
None of Defendants’ actions caused the Plan or its participants to suffer any loss.

Class Counsel has reviewed the evidence in the case and the potential risks and benefits of continued litigation and believes that the Settlement is in the best interest of the class.

Why is there a Settlement?

As in any litigation, all parties face an uncertain outcome. On the one hand, continuation of the case against the Defendants could result in a judgment greater than this Settlement. On the other hand, continuing the case could result in Plaintiffs obtaining no recovery at all or obtaining a recovery that is less than the amount of the Settlement. Based on these factors, the Named Plaintiffs and Class Counsel have concluded that the proposed Settlement is in the best interests of all Settlement Class members.

How do I know if I am part of the Settlement?

You are a member of the Settlement Class if you fall within the definition of the Settlement Class approved by the Court:

All persons, except Defendants and their immediate family members, who were participants in or beneficiaries of the Plan, at any time between April 30, 2014 through August 28, 2024.

If you are a member of the Settlement Class, the amount of money you will receive, if any, will depend upon the Plan of Allocation.

What does the Settlement provide?

If the Settlement becomes Final, a Settlement Fund consisting of $2,900,000 will be established. The amount of money that will be allocated among members of the Settlement Class, after the payment of any taxes and Court approved costs, fees, and expenses, including attorneys’ fees and expenses of Class Counsel, any Court-approved Case Contribution Awards to be paid to Named Plaintiffs, and payment of expenses incurred in calculating the Settlement payments and administering the Settlement, is called the “Net Settlement Amount.” The Net Settlement Amount will not be known until these other amounts are determined. The Net Settlement Amount will be allocated to members of the Settlement Class according to a Plan of Allocation to be approved by the Court. The Plan of Allocation describes how Settlement payments will be distributed to Settlement Class Members who receive a payment.

If the Settlement is approved by the Court, all Settlement Class Members will release any claims related to the allegations in the lawsuit and will be prohibited from bringing or pursuing any other lawsuits or other actions based on those claims. This means, for example, that Settlement Class Members will not have the right to sue the Released Parties for failure to prudently or loyally select and monitor the Plan’s investment options or fees, or related matters, that occurred during the period from April 30, 2014 to August 28, 2024 (the “Class Period”). The complete terms of the Settlement, including the definitions of the Released Parties and Released Claims, are set forth in the Agreement

How much will my payment be?

Each Settlement Class Member’s share will be calculated according to a Court-approved Plan of Allocation by a third-party vendor (“Settlement Administrator”) selected by Class Counsel. In general, your share of the Settlement will be calculated as follows:

First, the Settlement Administrator will obtain Plan account balances for each Settlement Class Member as of (i) April 30, 2014, or June 30, 2014, whichever balance is more practical to obtain, (ii) December 31 of each subsequent full calendar year of the Class Period up to and including 2023, and (iii) June 30, 2024. For any Class Member who had a balance in their account at or after the beginning of the Class Period, but liquidated their account before the end of the June 30, 2024, the earliest reasonably available balance of their account during the Class Period and the balance as of the end of the last quarter when they participated in the Plan will be the balances used for purposes of calculating an award under the Plan of Allocation. Each Class Member’s account balances for each year of the Class Period based on the account balances as of these dates will be summed. This summed amount will be that Class Member’s “Balance.”
Second, the Balances of all Class Members will be summed.
Third, each Class Member’s share of the Net Settlement Amount in proportion to that Class Member’s Balance as compared to the sum of the Balances of all Class Members will be determined by (i) dividing the Class Member’s Balance by the sum of all Class Members’ Balances and (ii) multiplying the result by the Net Settlement Amount. The resulting amounts shall be known as the “Preliminary Entitlement Amounts.”
Each Class Member whose Preliminary Entitlement Amount is less than $10 will receive a distribution of $10 (the “De Minimis Amount”) from the Net Settlement Amount. For the remaining Class Members, the remaining amount of the Net Settlement Amount shall be allocated using the same approach described in above. The resulting calculations will be the “Final Entitlement Amounts” for each Class Member. The sum of the Final Entitlement Amounts for each Class Member will equal the Net Settlement Amount.

How can I receive my distribution?

You do not need to file a claim. If you currently have an account in the Plan, any amounts you are entitled to receive will be added to your Plan account. If you no longer have an account in the Plan, any amounts you are entitled to receive will be sent to you via a check from the Settlement Administrator.

All such payments are intended by the Settlement Class to be “restorative payments” in accordance with Internal Revenue Service Revenue Ruling 2002-45. Checks issued to Former Participants pursuant to this paragraph shall be valid for 180 days from the date of issue. If you are a former Plan participant and have not provided the Plan with your current address, please contact Class Counsel listed on Page 2 of the Notice.

Each Class Member who receives a payment under this Settlement Agreement shall be fully and ultimately responsible for payment of any and all federal, state, or local taxes resulting from or attributable to the payment received by such person.

When will I get my payment?

The Settlement cannot be completed unless and until several events occur. These events include final approval of the Settlement by the Court, approval of the Settlement by the Independent Fiduciary to the Plan, transfer of the Net Settlement Amount to the Plan, and calculation of the amount of the Settlement owed to each Settlement Class Member. If objections are made to the Settlement or appeals are taken by objectors who oppose the approval of the Settlement, this process may take a long time to complete, possibly several years.

There will be no payments if the Settlement Agreement is terminated.

Can I get out of the Settlement?

You do not have the right to exclude yourself from the Settlement. The Settlement Agreement provides for certification of the Settlement Class as a non-opt-out class action under Federal Rule of Civil Procedure 23(b)(1), and the Court has preliminarily determined that the requirements of that rule have been satisfied. Thus, it is not possible for any Settlement Class members to exclude themselves from the Settlement. As a Settlement Class member, you will be bound by any judgments or orders that are entered in the Action for all claims that were or could have been asserted in the Action or are otherwise released under the Settlement.

How do I tell the Court I do not like the Settlement?

If you are a Settlement Class Member, you can object to any or all parts of the Settlement. You can explain why you think the Court should not approve it. To object, you must send a letter or other writing saying that you object to the Settlement in Davis v. Magna International of America, Inc., Case No. 2:20-cv-11060 (E.D. Mich.). Be sure to include your name, address, telephone number, signature, and a full explanation of all the reasons why you object to the Settlement. You must file your objection with the Clerk of the Court of the United States District Court for the Eastern District of Michigan so that it is received no later than December 6, 2024.

See your Notice for complete instructions.