Merrill Lynch 401(k) Losses

In 2008 current and former employees of Merrill Lynch filed several cases in federal court in the Southern District of New York against Merrill Lynch under the Employee Retirement Income Security Act (ERISA) for losses suffered as a result of 401k investment in company stock. Zimmerman Reed currently represents some of these employees. The plaintiff-employees alleged that the Administrator of the 401k Plan put employees' retirement savings at risk by investing in Merrill Lynch stock, violating the Administrator's fiduciary duty to the employees as 401k beneficiaries.

On January 16, 2009, a settlement was reached between employee-investors in Merrill Lynch stock and Merrill Lynch & Co., Inc. (iMerrill Lynchi). The settlement involves a class action brought on behalf of Merrill Lynch employees who invested in or held Merrill Lynch stock through the company's 401k plan during the period September 30, 2006, through to December 31, 2008. Under the terms of the proposed settlement, Merrill Lynch will pay $75 million in cash, and the claims will be dismissed. No date has been set for the Court hearing on preliminary approval of the settlement. If and when that approval is granted, a Notice of the settlement will be sent out to all potential class members, and a Fairness Hearing on the motion for final approval of the proposed settlement will be scheduled.

If you have questions about the proposed settlement, please feel free to contact us by phone, toll free at 800.755.0098, or e-mail by click here.