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Current and former Caliber Collision employees and other individuals who participated in the Caliber Holdings retirement savings plan, or were a beneficiary or alternate payee, at any time between Sept. 10, 2019, and Sept. 14, 2026, may be eligible to receive a payment from a class action settlement.
Wand Newco 3 Inc., d/b/a Caliber Collision, agreed to pay $750,000 to settle a class action lawsuit alleging it mismanaged 401(k) plan forfeitures in violation of federal law. The settlement includes approximately 54,000 current and former plan participants.
Who are the class members?
Class members are individuals who participated in the Caliber Holdings retirement savings plan, including predecessor or successor plans, at any time from Sept. 10, 2019, through Sept. 14, 2026, and beneficiaries of a deceased person or alternate payees of a person subject to a qualified domestic relations order who participated in the plan.
How much are settlement payments?
- Cash payment: Eligible class members will receive a cash payment from the net settlement fund. The settlement administrator will determine the final payment amount by the total plan administrative expenses Caliber Collision deducted from their account during the qualifying period.
- Former plan participants with a calculated share less than $10 will not receive a settlement payment.
- Current plan participants with a calculated share less than $1 will not receive a settlement payment.
The settlement administrator will reallocate any amounts it does not distribute due to these minimums among eligible class members.
- Current participants with a positive account balance: Payment credited directly to their plan account
- Former participants: Payment sent by check to their last known address
The settlement administrator will determine beneficiaries' or alternate payees' shares based on their entitlement under the plan or QDRO.
No claim form required
Class members do not need to submit a claim to receive a settlement payment. Former plan participants can contact class counsel to update their address information.
Payout options
- Current participants will receive their settlement payment credited to their plan account.
- Former participants will receive a paper check mailed to the address on file.
Settlement fund breakdown
The settlement fund of $750,000 will include:
- Settlement administration costs: To be determined
- Attorneys’ fees: Up to $250,000 plus expenses
- Service award to class representative: Up to $5,000
- Payments to eligible class members: Remaining settlement funds
Important dates
- Fairness hearing: Jan. 14, 2027
When is the Caliber 401(k) ERISA settlement payout date?
The settlement administrator will issue payments to eligible class members after the court grants final approval of the settlement.
Why is there a class action settlement?
The class action lawsuit alleged Caliber Collision breached its fiduciary duties under ERISA by using plan forfeitures to fund matching contributions instead of paying plan-related administrative costs. The plaintiffs claimed this violated ERISA’s prudence and loyalty requirements, anti-inurement clause and prohibited transaction rules.
Caliber denied all allegations and maintained that its actions were lawful but agreed to settle to avoid the uncertainty and cost of further litigation.
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