Frontier Communications $14M 401(k) Class Action Settlement

Current and former participants in or beneficiaries of the Frontier Communications Corp. 401(k) savings plan who invested in the Verizon stock fund between Dec. 12, 2012, and April 30, 2018, may be eligible to claim a cash payment from a class action settlement. According to plan records, there are an estimated 12,029 class members.

Frontier Communications agreed to pay $14,050,000 to settle a class action lawsuit for alleged breaches of fiduciary duty under the Employee Retirement Income Security Act of 1974. The lawsuit claims the company and its retirement investment and administration committee allowed the plan to become overly concentrated in Verizon stock, potentially harming participants’ retirement savings.

Who are the class members?

Class member are all individuals who meet the following criteria:

• They were participants in or beneficiaries of the Frontier Communications 401(k) savings plan at any time from Dec. 12, 2012, through April 30, 2018.
• They had plan accounts that included investments in Verizon common stock, including the Verizon stock fund.

The settlement also includes alternate payees under a qualified domestic relations order who participated in the plan during the class period.

How much can class members receive?

The total settlement fund is $14.05 million. After deductions for administrative costs, attorneys’ fees and expenses, and a service award to the named plaintiff, the settlement administrator will distribute the remaining net settlement fund among eligible class members.

The amount each class member receives depends on their average year-end balance in the Verizon stock fund during the class period. The settlement administrator will calculate each person’s share based on:

• Their year-end balance in the Verizon stock fund for each year from 2012-2017
• Their March 31, 2018, balance for 2018 (Frontier removed the fund from the plan in April 2018)

If a class member had no balance in a given year, the administrator will count it as $0 for the average.

To ensure fairness, no class member will receive less than $10. If their calculated allocation is less than $10, the administrator will increase it to $10 and adjust other allocations proportionally.

How to claim a class action payment

Most class members do not need to file a claim to receive their share of the settlement.

• Current plan participants whose accounts have a positive balance at the time of distribution will receive their payment as a direct deposit into their plan account.
• Former participants will automatically receive a paper check unless they request a rollover to a qualified retirement account by submitting the rollover form.

To request a rollover, class members must submit an online claim form or print and complete the PDF claim form and mail it to the settlement administrator.

Settlement administrator's address: Frontier ERISA Settlement Administrator, c/o Rust Consulting Inc - 9245, P.O. Box 2599, Faribault, MN 55021-9599

The deadline to submit a rollover request is Dec. 8, 2026.

Required information

• Beneficiaries or alternate payees, such as a surviving spouse or individuals with a qualified domestic relations order, may need to provide documentation showing their authority to claim on behalf of the deceased participant or as an alternate payee.
• Class members using the online rollover form must provide the claimant ID and access code they received with their settlement notice.

Payout options

• Automatic deposit into a class member's account (if they are still an active participant)
• Direct rollover to a qualified retirement account (upon request)
• Check mailed directly to the address on file (for those who no longer have a plan account and who do not request a direct rollover)

$14.05 million settlement fund breakdown

The $14,050,000 settlement fund includes:

• Settlement administration costs: Up to $85,000
• Attorneys’ fees: Up to $4,683,333.33
• Attorneys' expenses: Up to $225,000
• Service award to named plaintiff: Up to $25,000
• Payments to eligible class members: Remainder of the settlement fund

Important dates

• Deadline to file a rollover request: Dec. 8, 2026
• Fairness hearing: Jan. 7, 2027

When is the Frontier Communications settlement payout date?

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

Why is there a class action settlement?

The class action lawsuit alleged Frontier Communications and its retirement investment and administration committee failed to properly manage the plan’s investments, resulting in an overconcentration in Verizon stock. The plaintiffs claimed this constituted a breach of fiduciary duty under ERISA.

The defendants denied all wrongdoing but agreed to settle to avoid further litigation costs and risks.

Sources

1. Rollover form
2. Class notice
3. Settlement agreement
4. Settlement website FAQ page