Flat Rock Metal $1.8M ERISA Class Action Settlement

Participants in the Flat Rock Metal and Bar Processing employee stock ownership plan or a beneficiary of such a participant as of Nov. 24, 2020, or later you may be eligible to claim a cash payment from a class action settlement.

Flat Rock Metal Inc., through its plan and related parties, agreed to pay $1.8 million to resolve a class action lawsuit alleging the plan overpaid for SAC Ventures Inc. stock in a 2020 transaction in violation of federal law governing retirement plans.

Who are the class members?

The class includes:

• All participants in the Flat Rock Metal and Bar Processing employee stock ownership plan as of Nov. 24, 2020, or any time after
• Beneficiaries of such participants, regardless of whether they were vested at the time

The class covers both active and former participants, as well as those currently in pay status or not. There are approximately 702 class members based on a preliminary review of plan records.

How much can class members get?

The amount each eligible class member will receive depends on several factors, including the number of shares of SAC Ventures Inc. stock allocated to their plan account as of Dec. 31, 2024, and their vested status.

After deductions for attorneys’ fees, costs, service awards, administrative expenses, taxes and independent fiduciary fees, the plan recordkeeper will divide the net settlement fund pro rata among class members vested in the plan. This means each person’s share is based on the number of shares they held relative to the total shares held by all class members.

How to receive a Flat Rock ESOP payment

Eligible class members who have an active ESOP account do not need to take any action and will automatically receive their payment.

Those who do not have an active ESOP account and are not in pay status must download, print, complete and return the settlement payment election form by March 17, 2026, to choose their payment method.

Settlement administrator's mailing address: Bonds v. Heeter, et al., c/o Settlement Administrator, P.O. Box 25226, Santa Ana, CA 92799

Payout options

• Active ESOP account holders will receive their share directly into their ESOP account.
• Former participants not in pay status must submit a payment election form to choose between a check or rollover to a retirement account.
• Former participants in pay status will receive payment according to the election the plan the recordkeeper has on file.

For class members who do not submit a payment election form and are not in pay status:

• If their share is $1,000 or less, they will receive a check (less applicable taxes).
• If their share is greater than $1,000 but less than or equal to $7,000, the recordkeeper will roll their share over into an individual retirement account at Inspira Financial LLC.
• If their share is greater than $7,000, the recordkeeper and/or administrator will try to locate them. If they cannot, they will forfeit their share, and the recordkeeper and/or administrator will reallocate it to active ESOP account holders

$1.8 million settlement fund breakdown

The $1,800,000 settlement fund includes:

• Administrative expenses: Up to $100,000
• Attorneys’ fees: Up to $600,000
• Attorneys’ expenses: To be determined
• Service award to class representative: Up to $10,000
• Independent fiduciary fees: To be determined
• Payments to class members: Remainder of the settlement fund

Important dates

• Election form deadline: March 17, 2026
• Final approval hearing (fairness hearing): April 7, 2026

When is the Flat Rock ESOP litigation payout date?

The settlement administrator will issue payments after the court resolve any appeals and grants final approval to the settlement.

Why is there a class action settlement?

The class action lawsuit alleged the Flat Rock Metal and Bar Processing employee stock ownership plan overpaid for SAC Ventures Inc. stock in a 2020 transaction, violating the Employee Retirement Income Security Act, which sets standards for private retirement plans.

The defendants denied all wrongdoing but agreed to settle to avoid the uncertainty, expense and burden of further litigation.

Sources

1. Class notice
2. Settlement agreement
3. Election form
4. Settlement FAQ
5. Important dates