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Participants in or beneficiaries of the Russelectric Inc. Employee Stock Ownership Plan who received a benefit when the company terminated the plan may be eligible to claim a cash payment from a class action settlement.
Russelectric and several related defendants agreed to pay $14,550,000 to settle a class action lawsuit alleging violations of the Employee Retirement Income Security Act of 1974 in connection with the administration and termination of the Russelectric ESOP, as well as the sale of Russelectric to Siemens.
Who qualifies for the class action payout?
Class members must meet one of the following criteria:
- They participated in the Russelectric ESOP and received a benefit at the time of its termination.
- They are a beneficiary, such as a surviving spouse or heir of a deceased participant, who received a benefit at the time of the ESOP termination.
- They are an alternate payee under a qualified domestic relations order.
How much is the settlement payment?
Pro rata payment: Eligible class members will receive a pro rata payment from the net settlement fund. The payment each class member receives is based on their percentage interest in the ESOP at the time of its termination. There are approximately 394 eligible class members.
How to claim a class action payment
Most class members do not take any action to receive their payment. If they do nothing, the settlement administrator will mail a check to their last known address. Claimants can update their address by contacting the settlement administrator. Payments made directly by check are subject to automatic tax withholding and tax reporting.
Class members who prefer to receive their payment as a direct rollover to an individual retirement account or a qualified employer plan must submit the rollover form they received with their settlement notice or print a complete a rollover form and mail or email it to the settlement administrator. Class members can also request a paper rollover form from the settlement administrator.
Settlement administrator’s mailing address: Russelectric ESOP Settlement, c/o Atticus Administration, P.O. Box 64053, St. Paul, MN 55164
Settlement administrator's email address: RusselectricESOPSettlement@atticusadmin.com
Settlement administrator's phone number: 800-971-2054
Required information
Beneficiaries or alternate payees must provide documentation if they file a claim on behalf of a deceased participant or under a QDRO.
Payout options
- Direct rollover to an IRA or qualified employer plan (requires submitting a rollover form)
- Check mailed directly to the address on file (default option if a class member does not request a rollover)
$14.55 million settlement fund breakdown
The $14,440,000 settlement fund includes:
- Settlement administration costs: To be determined
- Attorneys’ fees: Up to $4,850,000
- Attorneys’ expenses: Up to $1,350,000
- Service awards to class representatives: Up to $25,000 each ($100,000 total)
- Payments to eligible class members: Remaining settlement funds
Important dates
- Deadline to submit rollover form: Nov. 16, 2026
- Fairness hearing: Nov. 16, 2026
When is the Russelectric ESOP Settlement payout date?
The settlement administrator will issue payments to eligible class members after the court resolves any appeals and grants final approval of the settlement.
Why did this class action settlement happen?
Former participants in the Russelectric ESOP alleged the plan’s trustees and administrators violated the Employee Retirement Income Security Act of 1974 by improperly managing and terminating the ESOP and mishandling the sale of Russelectric Inc. to Siemens.
The defendants denied all claims but agreed to settle to avoid the uncertainty and expense of further litigation.
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