HBSS Announces Settlement in General Motors ERISA Case


We are pleased to announce that we have filed a motion for preliminary approval of a proposed Settlement of all claims in In Re General Motors ERISA Litigation. If approved, the Settlement will provide a cash fund of $37.5 million. After the award of attorneys' fees and costs as approved by the Court, the remainder of the fund would be distributed to participants and beneficiaries of the General Motors Savings-Stock Purchase Program for Salaried Employees and the General Motors Personal Savings Plan for Hourly Rate Employees who held GM Stock in their Plan accounts during the period from March 18, 1999 through May 26, 2006. (These particiapnts and beneficiaries are Settlement Class Members). The payments under the Settlement will be made to Settlement Class Members roughly in proportion to the value of their investments in GM stock in one of the Plans during this period.

In addition to the monetary recovery, Settlement Class Members would receive substantial additional benefits under the proposed Settlement, including the following: (1) GM will retain an independent fiduciary to monitor the prudence of offering GM stock as an investment in the Plans, which will mitigate against the risk of large losses in the future (2) GM will not make matching contributions in the form of investment in Company Stock, which should lead to greater diversification in the Salaried Plan; (3) GM will maintain upgraded communications to Plan participants concerning the available investments in the Plans; (4) GM will provide a Savings Plan portfolio tool that enables Plan participants to model various retirement scenarios free of charge for one year; and (5) 'Money in Motion,' a one-year financial advisory program from Ayco Company, will be available to all Plan participants at a reduced cost of $30.

If the Settlement receives preliminary approval, a Court-approved Notice will be mailed to the last known address of all Settlement Class Members. The Court would then schedule a Final Approval Hearing in which it would decide whether or not to grant Final Approval to the proposed Settlement.

To view more information about the case please visit the General Motors ERISA case page.

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09/18/08: Case Settled

On June 5, 2008, the District Court granted final approval to the Settlement. However, on June 23, 2008, a Notice of Appeal from the Settlement was filed with the United States Court of Appeals from the Sixth Circuit. Ultimately, the settlement resulted in $37.5 million for General Motors ERISA plan participants and their beneficiaries in addition to significant revision of retirement plan administration.