Magna International $2.9 Million ERISA Settlement

If you were a participant in the Magna Group of Companies Retirement Savings Plans at any time between April 30, 2014, and August 28, 2024, you may be eligible to claim an award from a class action settlement.

Magna International of America, Inc. has agreed to pay $2,900,000 to settle a class action lawsuit for alleged breaches of fiduciary duties related to excessive fees in their retirement plans.

Who are the class members?

• You must have been a participant or beneficiary of the Magna Group of Companies Retirement Savings Plans.
• Your participation must have occurred at any time between April 30, 2014, and August 28, 2024.

Class members do not need to file a claim to receive a payment. If you are eligible, your payment will be automatically processed based on the Plan’s records.

How much can class members get?

• Calculation Method: Your account balances as of April 30, 2014, or June 30, 2014, December 31 of each subsequent year, and June 30, 2024, will be summed to determine your total balance.
• Pro Rata Distribution: Your share of the settlement is calculated by dividing your balance by the total balance of all class members, then multiplying by the net settlement amount.
• Minimum Payment: If your calculated share is less than $10, you will receive a minimum payment of $10.

If you are a current participant in the Plan, your settlement share will be deposited directly into your account. Former participants will receive a check from the Settlement Administrator.

$2.9 Million settlement fund

The settlement fund of $2,900,000 will cover various costs and distributions:

• Attorneys’ fees: Up to $966,667
• Litigation expenses: Up to $100,000
• Case contribution awards for the Named Plaintiffs: Up to $30,000 total
• Administrative costs for processing the settlement
• The remaining amount will be distributed to class members.

Important dates

• Fairness Hearing: January 7, 2025
• Deadline to File a Claim: Not applicable as no claim is needed

When is the Magna ERISA Settlement payout date?

The payout date will follow the final approval of the settlement, scheduled for January 7, 2025. If approved, the funds will be distributed according to the plan of allocation

Why was there a class action settlement?

The lawsuit was initiated because the Named Plaintiffs claimed that Magna International of America, Inc. allowed the Plan to incur unreasonably high fees, breaching fiduciary duties under ERISA. The settlement was reached to avoid the uncertainties and costs of continued litigation.