American Red Cross $950,000 ERISA Retirement Plan Settlement

Participants in the American Red Cross Savings Plan who had an account balance at any time between March 2, 2015 and March 31, 2025, or who were a beneficiary or alternate payee of such a participant may qualify to claim a cash payment from a class action settlement.

American National Red Cross agreed to pay $950,000 to settle a class action lawsuit alleging the plan’s fiduciaries mismanaged retirement plan investment options and allowed it to incur excessive administrative and recordkeeping fees. The plaintiffs also claimed the Red Cross and its benefit plan committee failed to properly monitor those responsible for managing the plan.

Who are the class members?

Class members must meet the following criteria:

• They were a participant in the American Red Cross Savings Plan (including any predecessor, successor, merged or acquired plans) with an account balance at any time between March 2, 2015, and March 31, 2025.
• Current participants: Individuals who have an active account with a balance greater than $0 as of June 11, 2025. These members do not need to take any action to receive their share of the settlement.
• Former participants: Individuals who had an account balance during the class period but do not have an active account as of June 11, 2025. These members must submit a claim form to receive a payment.
• Beneficiaries and alternate payees: Individuals who are beneficiaries or alternate payees of either current or former participants provided the underlying participant met the above criteria

The settlement administrator will determine eligibility based on plan records.

How much is the Red Cross payout?

Pro rata payment: The total settlement fund is $950,000. After deducting court-approved attorneys’ fees, expenses, administration costs, taxes and service awards to class representatives, the settlement administrator will distribute the remaining net settlement amount to eligible class members.

The amount each class member receives depends on several factors:

• The number of eligible claimants
• Each person’s account balance during the class period

No payment will be made to former participants entitled to $9.99 or less. Current participants are not subject to this restriction.

How to claim a class action rebate

Current participants with an active account do not need to take any action. The American Red Cross will automatically deposit payment into their plan account if the settlement receives final approval.

Former participants (or beneficiaries or alternate payees of former participants) who do not have an active account must file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim form deadline is Oct. 9, 2025.

Settlement administrator’s mailing address: Red Cross Savings Plan Settlement Administrator, P.O. Box 2010, Chanhassen, MN 55317-2010

Information required to submit a claim

• All class members must provide their Social Security number.
• To file an online claim, class members must provide the claim number and PIN located on the mailed settlement notice they received.

Payout options

• Current participants: The American Red Cross will deposit payments directly into their plan accounts.
• Former participants: If the amount exceeds $9.99, the American Red Cross will make payments by check or rollover, depending on the class members' selection on the claim form.
• Beneficiaries and alternate payees: The American Red Cross will make payments according to their relationship to the participant.

$950,000 million settlement fund

The $950,000 settlement fund includes:

• Settlement administration costs: Up to $25,000
• Attorneys’ fees: Up to $316,666.67
• Attorneys’ expenses: Up to $75,000
• Service awards to class representatives: Up to $5,000 each for six representatives (up to $30,000 total)
• Payments to eligible class members: The remainder of the fund

Important dates

• Objection deadline: Sept. 5, 2025
• Fairness hearing: Oct. 7, 2025, at 2:00 p.m.
• Claim deadline (for former participants, beneficiaries, and alternate payees): Oct. 9, 2025

When is the Red Cross ERISA settlement payout date?

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

Why did this class action settlement happen?

The class action lawsuit alleged the American National Red Cross and its benefit plan committee breached their fiduciary duties under the Employee Retirement Income Security Act of 1974 by selecting and maintaining certain investment funds and allowing the plan to pay excessive administrative fees. The plaintiffs also claimed the defendants failed to monitor the plan’s fiduciaries.

The defendants deny all allegations but agreed to settle to avoid the costs and risks of further litigation.

Sources

1. Class notice
2. Settlement agreement
3. Claim form
4. Settlement FAQ