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Omnicom Group Inc. Reaches Settlement Over 401(k) Plan

Omnicom Group Inc. has reached a settlement over its 401(k) Plan. The settlement aims to compensate former participants who held investments in the Omnicom Stock Fund between 2012 and 2016.

Omnicom Group Inc. Reaches Settlement Over 401(k) Plan
Updated on
Published on

Settlement Terms

  • Status:
    Closed
  • Award:
    Not provided
  • Is Proof Required?
    Yes
  • Claim Deadline:
    November 2, 2023
    Not Set
  • Days Left to File Claim:
    0
  • Settlement Amount:
    $2,450,000
  • Final Approval:
    December 1, 2023
Settlement summaries by Claim Depot are written for people who might be eligible to claim class action settlement awards. Our goal is to provide the reader all relevant information about the settlement so they can claim their lawsuit funds. Claim Depot uses artificial intelligence (AI) to extract data from the vast amounts of text on the Official Settlement Website and in the court documents. Then, our writers, who are licensed attorneys, write the summary in plain English so the greater public can better understand their rights.

The Omnicom Group Inc. has reached a settlement relating to its 401(k) Plan. This settlement is the result of a class-action lawsuit, which alleged breaches of fiduciary duties by Omnicom Group Inc. The class members eligible to receive awards from the settlement are former participants in the Omnicom Group Inc. 401(k) Plan who held investments in the Omnicom Stock Fund at any time between May 29, 2014, and July 5, 2023.

Analyzing the Omnicom 401k Settlement

The exact settlement amount has not been disclosed on the official settlement website. However, the settlement aims to provide compensation to class members who may have suffered losses due to alleged breaches of fiduciary duties by Omnicom Group Inc. The amount a class member can receive is dependent on their former participation in the 401(k) Plan and their investments in the Omnicom Stock Fund during the specified period.

The settlement is the result of negotiations between the parties and was reached after considering the risks and costs associated with continued litigation. The settlement is intended to avoid the uncertainties and expenses associated with ongoing litigation and to provide benefits to class members.

Key Dates in the Settlement Timeline

The fairness hearing for the settlement is scheduled for December 1, 2023. This is when the court will review the settlement and determine its fairness. The deadline to file a claim is November 2, 2023. Class members who wish to receive a share of the settlement must submit their claim by this date.

Who Are the Class Members?

The class members in this settlement are former participants in the Omnicom Group Inc. 401(k) Plan who held investments in the Omnicom Stock Fund between May 29, 2014, and July 5, 2023. There are no exclusions mentioned on the settlement website.

Potential Awards for Class Members

The Settlement Administrator shall determine two “Settlement Allocation Scores” for each Current Participant, Former Participant, Beneficiary, or Alternate Payee: the “Investments Score” and the “Recordkeeping Score.”

The Investments Score shall be calculated by: (i) determining the sum of the year-end account balances in each of the Fidelity Freedom Funds1 of each Current Participant and Former Participant during the Class Period, or, if a Beneficiary or Alternate Payee had a separate account in the Plan during the Class Period, by determining the sum of the year-end balance in each of the Fidelity Freedom Funds of each such Beneficiary or Alternate Payee; and (ii) dividing the sum of each Current Participant’s or Former Participant’s, or, to the extent applicable, each Beneficiary’s or Alternate Payee’s, year-end account balances in each of the Fidelity Freedom Funds during the Class Period by the total sum of year-end asset amounts in each of the Fidelity Freedom Funds in Plan during the Class Period.

The Recordkeeping Score is calculated by: (i) determining, for each year beginning in 2019, whether each Current Participant and Former Participant, and any Beneficiary or Alternate Payee that had a separate account in the Plan, had a beginning account balance (determined by the previous year-end account balance) exceeding $1,000; and (ii) dividing the sum of the instances in which each Current Participant or Former Participant, or, to the extent applicable, each Beneficiary or Alternate Payee, began a calendar year, starting in 2019, had an account balance exceeding $1,000 by the total sum of Plan accounts with a balance to begin a calendar year, beginning in 2019.

The Investments Score shall be used to calculate the pro rata settlement payment to each Current Participant, Former Participant, Beneficiary, or Alternate Payee from the Investments Settlement Amount and the Recordkeeping Score shall be used to calculate the pro rata settlement payment to each Current Participant, Former Participant, Beneficiary, or Alternate Payee from the Recordkeeping Settlement Amount. 

Is Proof Required to Claim the Reward?

Yes, proof is required to claim an award from the settlement. Class members will need to provide proof of their former participation in the Omnicom Group Inc. 401(k) Plan and their investments in the Omnicom Stock Fund during the specified period. Claim forms have been mailed to the Class Members by the claims administrator.

Why Is There a Class Action Settlement?

The class action lawsuit alleged that Omnicom Group Inc. breached its fiduciary duties to the participants of its 401(k) Plan. The settlement is intended to compensate those who may have suffered losses as a result of these alleged breaches. The next steps for class members who wish to receive a share of the settlement are to complete and submit the Former Participant Claim Form by the claim filing deadline of November 2, 2023.

Case Facts

  • Case Number:
  • Filing Date:
  • Jurisdiction:
    U.S. District Court for the Southern District of New York
  • State:
    New York
  • Court:
  • Plaintiff:
  • Defendant:
    Omnicom Group Inc.
  • Plaintiff Firm:
    Miller Shah LLP
  • Claims Admin:
    Strategic Claims Services 600 North Jackson Street – Suite 205 Media, PA 19063 Phone: 866.274.4004 (Toll-Free) or 610.565.9202 Email: info@strategicclaims.net
  • Defendant Firm:
Contributors
Jerome Andries, Esq.
Jerome Andries, Esq.
Reporter and Licensed Attorney
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Settlement Agreement

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Settlement Agreement

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