InterArch, Inc. Profit Sharing Plan

McCann v. Hill, et al., No. 1:20-cv-06435 (D. N.J.)

Stock ticker:

For questions about the settlement procedures or forms and information about you including your settlement payment, please contact the Settlement Administrator:

InterArch Litigation Settlement
c/o Settlement Administrator
P.O. Box 59479
Philadelphia, PA 19102-9479
866-742-4955 

For additional information about the settlement, please visit www.interarchsettlement.com

For questions about the Lawsuit or the Settlement Overall (and if the Settlement Administrator cannot answer your questions), contact Class Counsel at InterArchLawsuit@blockleviton.com

Summary of the Lawsuit

This lawsuit alleges that the fiduciaries of the InterArch, Inc. Profit Sharing Plan breached their fiduciary duties by failing to prudently, loyally invest and properly diversify the investments of Plan assets in violation of the Employee Retirement Income Security Act of 1974 (“ERISA”). The lawsuit also alleges that the fiduciaries of the Plan engaged in prohibited transactions by investing the assets of the Plan in companies that the Trustee's husband had founded and had substantial investments and control over.

Summary of the Claims

The Complaint alleges that the Trustee of the Plan, Shirley Hill, invested at least 70% of the Plan assets were invested in the stock Metro Bank – which is a company for which her husband, Vernon Hill, was the founder, and then-Chairman. Beginning in March 2018, Metro Bank stock steadily declined. Between November 1, 2018 and October 31, 2019, the assets of the InterArch, Inc. Profit Sharing Plan declined by $13,241,354 from $17,140,761 to $3,899,407. And $12,537,629 of the decline in net assets was in the value of the Plan’s investments. According to filings submitted to the US Department of Labor, approximately 70% of the Plan’s assets were undiversified as of October 31, 2018 and almost 90% of the Plan’s assets were undiversified as of October 31 2019.

The Complaint alleges that most, if not all, of the decline in the Plan’s assets could be attributed to the decline of the value of Metro Bank stock.

Class Action Allegations

The Court has certified the Claims on behalf of the following persons:

All participants in the InterArch, Inc. Profit Sharing Plan at any time between March 6, 2018 to the present (except those who terminated without vesting) and the beneficiaries of any such participants.

Excluded from the Class are (1) Defendants, (2) any fiduciaries of the Plan, who are alleged to have engaged in prohibited transactions or breaches of corporate fiduciary duties, or who had decision-making or administrative authority relating to the administration, investment allocation, modification, funding, or interpretation of the Plan, (3) any beneficiaries of the foregoing as well as any members of their immediate families, and (4) any of their successors, executors, or assigns.

Status of the Litigation

The Complaint was filed on May 27, 2020. Defendants answered the Complaint on July 28, 2020.

After Defendants provided Plaintiff with certain discovery and after several settlement conferences with the Magistrate Judges, the Parties reached a settlement in principle on behalf of the Class.

Settlement

Plaintiff and Defendants have agreed to a settlement in this case of$1,512,055.70. Under the original settlement, Defendants agreed to pay $950,000 to resolve all the claims of the Class. The Court granted preliminary approval of the settlement on April 8, 2022. On May 27, 2022, Class Counsel filed their Motion for Attorneys’ Fees and Costs. No objections were received as to the original Settlement or the Attorneys’ fees and expenses.

As a result of further negotiations, the parties agreed to the Amendment to the Class Action Settlement Agreement, which requires Defendants to pay an additional $562,055.79, for a total of $1,512,055.70. On September 15, 2022, Plaintiff filed a Supplemental Motion for Preliminary Approval of the Amendment to the Class Action Settlement Agreement. The Court approved the Amendment to the Class Action Settlement Agreement and Modified Plan of Allocation on September 26, 2022. 

The Plan of Allocation was modified as a result of the Amended Settlement Agreement. After subtracting the court-approved attorneys’ fees and costs and class representative service award, the remaining amount of the settlement fund will be distributed to the participant class members and beneficiaries who would be entitled to payment under the terms of the Plan. 

Class members will have until November 10, 2022 to file any objection to the revised Plan of Allocation for the Amendment of the Class Action Settlement Agreement. 

The Court has set a final fairness hearing on December 16, 2022 at 11 a.m. at the United States District Court for the District of New Jersey, Mitchell H. Cohen Building & U.S. Courthouse, 4th & Cooper Streets, Camden, NJ08101.

Whom to Contact for More Information

If you are a member of the proposed class or you have information which might assist us in the prosecution of these allegations, please contact one of the following persons:

R. Joseph Barton, Esq. (jbarton@blockleviton.com)
Colin Downes, Esq. (colin@blockleviton.com)
Ming Siegel, Paralegal (ming@blockleviton.com)
Block & Leviton LLP
1633 Connecticut Ave. NW, Suite 200
Washington DC 20009
(202) 734-7046

Block & Leviton LLP is co-counsel in this litigation with The Garner Firm, Ltd.

Download Complaint

Are you a victim of corporate fraud?

Talk to us about your case.

Contact our attorneys for a no-cost case evaluation.