CIGNA And Prudential 401(K) Class Action Lawsuit Settlement
The amount of the settlement that has been agreed upon by both of the Insurance companies is $35 million. The reason for the lawsuit is because those who worked with Cigna said that the fees for their 401(K) contributions were too high. This is definitely not fair. This case actually lasted 6 years. The three original plaintiffs who filed the suit against Cigna and Prudential are Kim Nolte, Sherry Lewis and Theresa Mitchell.
The three women who filed the lawsuit said that the fees were excessive and definitely unreasonable. The companies did not allow for transactions. This is in violation of their fiduciary duty. They said that there were about 22 options that they could select from. About 65% of the plan assests actually went to 2 of the companies funds. One of them is the Fixed Income Fund. The second one is the Cigna Company Stock Fund.
The CIGNA 401(K) And Prudential 401(K) Class Action Lawsuit Settlement has been preliminarily approved. However there is no final approval yet. So all those who had a 401(K) account with Cigna are considered class members. However the period covered for the case is from April 1, 1999 to May 31. Being a class member, you should be able to get benefits if you follow closely what you are required to do. At this moment there is no further information on how you will be able to get the benefits. However, soon there will be a website where all the information that you need will be provided to you. It is really frustrating when the investments that you choose funds the companies own funds. There is definitely something not right here. The company actually took part in transfers that were revenue sharing. This was actually hidden. To tell you the truth, I do not understand all of what went on but it sure sounds like it was not above boards. Sounds to me like the company was out to make a lot of profit for itself at the expense of all those who had the accounts. Some of that money went to Prudential.
Also when the website is set up, you will be able to not only file online but also be able to get contact information for various people that you may need to get in touch with. In some cases you have to file in order to get payment. In other cases you do not have to. So make sure you find out what you have to do in this case so that you do not miss out on the benefits.
Hopefully the CIGNA 401(K) And Prudential 401(K) Class Action Lawsuit Settlement will bring about more caution on the part of the companies such as this in terms of the accounts of the employees. I am sure these are not the only two companies that are doing this. I do not know for sure but at least this will make them more accountable and more cautious in terms of what they do.
Now if you are truly interested in taking part and getting some of the money, you will just have to be patient and wait. Do keep checking online so that you know when that information becomes available. There is no point in contacting the court because they will not be able to provide you with the information. You will be wasting not only your time but also the time of the court.
One thing that I would suggest that you do is to wait for a notice in the mail. Usually that will have all the information that you need. If a website has been set up, you will also get that information. However, do be warned that the information may be difficult to read because of the legal language that will be used. So if you have a friend who is a lawyer, get him or her to read it and explain it to you. If you do not have one, then try Googling things that you do not understand. This may take you longer but you will eventually understand what it meant. It is funny how you can find everything online these days. I never use a dictionary or an encyclopedia any more because of the Internet. However, do make sure that the information that you get is correct.
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