Advanced Diagnostic Group $19 Million ERISA Settlement

If you were issued a distribution from the Advanced Diagnostic Group Employee Stock Ownership Plan, you may be eligible to claim compensation from a class action settlement.

Advanced Diagnostic Group has agreed to pay $19,000,000 to settle a class action lawsuit for alleged improper establishment, administration, and termination of their Employee Stock Ownership Plan.

The lawsuit claims that the plan, established in 2015 and terminated in 2019, was not managed in accordance with the Employee Retirement Income Security Act of 1974 (ERISA). Although the defendants deny any wrongdoing, they have agreed to the settlement to avoid further litigation.

Who are the class members?

• If you received a distribution from the ESOP Plan between 2015 and 2019, you are likely a class member.
• Beneficiaries or alternate payees of participants are also included, provided they received distributions.

How much can class members get?

The settlement provides a $19 million fund to be distributed among class members. The amount each member receives will be based on their prior distributions from the Plan. The Net Settlement Amount, after deductions for attorneys' fees and costs, will be divided pro rata among class members.

For example, if the Net Settlement Amount is $12 million and the total prior distributions equal $10.5 million, a class member who received $10,500 in prior distributions would receive $12,000. This is calculated by determining the member's percentage of prior distributions (0.1% in this case) and applying it to the Net Settlement Amount.

• Example Calculation:
• Net Settlement Amount: $12,000,000
• Total Prior Distributions: $10,500,000
• Class Member A's Prior Distribution: $10,500
• Class Member A's Percentage: $10,500 / $10,500,000 = 0.001 (0.1%)
• Class Member A's Settlement Credit Amount: $12,000,000 \* 0.001 = $12,000

No Action Needed to Receive Compensation

Class members do not need to take any action to receive their settlement payment. The settlement administrator will mail checks directly to eligible members.

However, if you prefer to receive your payment as a rollover to an individual retirement account or qualified employer plan, you must submit a Rollover Form by October 9, 2024.

Payment Methods

• Direct rollover to an IRA or qualified employer plan
• Check mailed directly to you

$19,000,000 Settlement Fund

The settlement fund of $19,000,000 will cover the claims of the settlement class against the defendants. After deductions for court-approved attorneys' fees and costs, and administrative expenses, the remaining amount will be distributed to class members.

Attorneys' fees will not exceed one-third of the settlement fund, which amounts to $6,333,333.33.

When is the ADG ESOP Payout Date?

The awards will be paid approximately four months after the Court's Final Approval Order, provided there are no appeals. The approval order will come after October 9, 2024.

What Happens Next?

The next step is the Fairness Hearing on October 9, 2024, where the Court will decide whether to approve the settlement. If approved, and if there are no appeals, payments will be distributed approximately four months after the final approval.