Nova Southeastern University $1.5M ERISA Settlement

If you were a participant in or a beneficiary of the Nova Southeastern University 401(k) Plan at any time between April 1, 2016, and September 30, 2024, you may be eligible to claim compensation from a class action settlement.

Nova Southeastern University has agreed to pay $1,500,000 to settle a class action lawsuit for allegedly breaching fiduciary duties under the Employee Retirement Income Security Act of 1974 (ERISA).

The lawsuit accused the university of causing the plan to incur excessive administrative fees and offering imprudent investment options.

Who can participate in the settlement?

The class members are individuals who participated in or were beneficiaries of the Nova Southeastern University 401(k) Plan during the class period from April 1, 2016, to September 30, 2024.

How much can class members get?

The settlement amount of $1,500,000 will be distributed among class members based on a pro-rata share of the net settlement amount. This means that each class member's share will be calculated based on their average account balance during the class period.

The settlement administrator will calculate each member's average account balance and determine their share of the net settlement amount. If a member's calculated share is less than $50, they will not receive a payment.

For example, if the net settlement amount is $1,000,000 after fees and costs, and the total of all average account balances is $10,000,000, a member with an average account balance of $10,000 would receive $1,000.

Class members do not need to provide additional proof as the settlement administrator already has the necessary information to determine eligibility and calculate payments.

Class members do not need to take any action to receive their share of the settlement if they are eligible. The settlement administrator will automatically distribute payments based on the plan of allocation.

$1,500,000 Settlement fund

The settlement fund of $1,500,000 will cover various costs associated with the lawsuit and distribution of funds:

• Attorneys' fees: Up to 33% of the settlement amount
• Litigation costs and expenses
• Settlement administration costs
• Net settlement amount distributed to class members

Important dates

• Fairness Hearing: February 28, 2025

When is the Nova Southeastern University ERISA Settlement payout date?

The final approval of the settlement will occur after the Fairness Hearing on February 28, 2025. If approved, the settlement administrator will distribute the net settlement amount to eligible class members after any appeals are resolved.

Why is there a class action settlement?

The class action lawsuit was filed against Nova Southeastern University for allegedly breaching fiduciary duties under ERISA. The plaintiffs claimed that the university allowed the plan to incur excessive fees and offered imprudent investment options. The settlement was reached to avoid the costs and risks of prolonged litigation.