Dynegy ERISA Litigation
Practice Area: Employee Benefits Success
The Dynegy, Inc. ERISA Litigation, Civil Action No. H-02-3076, was filed in the United States District Court for the Southern District of Texas, Houston Division, on behalf of the Plaintiff and a class (the "Class") of participants and beneficiaries of the Dynegy, Inc. 401(k) Savings Plan (formerly known as the Dynegy Inc. Profit Sharing 401(k) Savings Plan and the NGC Profit Sharing/401(k) Savings Plan) (the "Plan").
Preliminary Approval of $30.75 Million Settlement
On October 29, 2004, U.S. District Court Judge Sim Lake granted preliminary approval of a proposed settlement in the Dynegy, Inc. ERISA Litigation. The Court ordered that notice of the settlement be given to the class members.
Final Approval of the Settlement
On December, 10, 2004, U.S. District Court Judge Sim Lake granted final approval of the proposed settlement. Distribution of the settlement proceeds to the Plan, net of the court approved amount for fees and expenses, occurred in January, 2005. The settlement proceeds will be allocated to the accounts of individuals who participated in the Plan during the class period, or their beneficiaries, in accordance with the allocation plan approved by the Court. While there is no deadline for the completion of this process, we anticipate that it will be completed during the first quarter of 2005. Class members do not need to file a claim in order to participate in the settlement.
Who Is Included In The Settlement Class
The Settlement Class, as approved, is defined as follows:
(a) All Persons who were participants in the Plan at any time from April 27, 1999 through January 30, 2003, inclusive; and (b) as to each Person within the scope of subsection (a), his, her or its beneficiaries, alternate payees, Representatives and Successors-In-Interest. Excluded from the Settlement Class are the Defendants and the Dismissed Defendants, and the Immediate Family and Successors-In-Interest of any Defendant or Dismissed Defendant, except for Immediate Family members who themselves are not Defendants or Dismissed Defendants and who were participants in the Plan at any time from April 27, 1999 through January 30, 2003, inclusive.
The Settlement
In settlement of this case, the Defendants have agreed to reimburse the class members for their alleged losses in the amount of $30.75 million. This money will be used to compensate the class members, the class representative, and attorneys for the class. It will also be used to pay the cost of the settlement administration.