CASE UPDATES

Last Updated: June 2008

Stember Feinstein Doyle & Payne, LLC, is counsel in a number of class action lawsuits. As a service to class members and others who may be interested, we provide periodic updates on the status of the litigation.

401(k)/Pension Class Actions

Federal-Mogul Corp. Retirement Programs Committee – Stember Feinstein Doyle & Payne represents participants in the Federal-Mogul Corporation Salaried Employees Investment Program between July 1, 1999, and October 30, 2002, for whose benefit the Plan invested or maintained investments in the Federal-Mogul common and/or preferred stock.  The United States District Court for the Eastern District of Michigan granted final approval to a settlement on July 12, 2007.  The settlement provides relief to the class in the form of a cash payment of $12,750,000 and the agreed allowance of a $3,000,000 unsecured claim against the Federal-Mogul bankruptcy estate. 

First Horizon National Corporation –  Stember Feinstein Doyle & Payne represents participants in the First Horizon National Corporation 401(k) Plan over losses to the Plan’s assets.   The suit alleges that fiduciaries of the Plan violated ERISA by imprudently investing in Regions stock while the company was concealing Regions Financial’s large exposure to highly risky Collateralized Debt Obligations, subprime mortgages, and other poor-quality securities.   The suit also alleges that the Plan did not properly consider mutual investment options besides mutual funds owned by First Horizon.  The case is pending in the United States District Court for the Western District of Tennessee.

Freight Car America – Stember Feinstein Doyle & Payne represents a group of employees at the company’s Johnstown, Pennsylvania plant who allege that the company terminated their employment in order to deny them the opportunity to vest for pensions.   This case is pending in the United States District Court for the Western District of Michigan.   On January 11, 2008, the District Court granted the employees’ motion for preliminary injunction and ordered the company to reinstate the workers immediately. The company has appealed this decision.

Harnischfeder Industries – Stember Feinstein Doyle & Payne represents participants in the Joy Global Retirement Savings Plan and its predecessor plans.  The action alleged that the defendants breached their duties under ERISA by permitting the Plan to offer funds consisting of Harnischfeger Industries, Inc. common stock when they knew or should have known that the stock was an imprudent retirement investment.  The United States District Court granted final approval to a settlement in the amount of $10,850,000 on June 29, 2006. The first distribution to class members’ plan accounts was completed on June 21, 2007.  A second, smaller distribution will follow. 

Northrop Grumman – Stember Feinstein Doyle & Payne represents former employees of Northrop Grumman seeking class certification and alleging that the company improperly calculated the pension benefits of former employees of Litton Industries, which was purchased by Northrop Grumman in 2001.  The district court recently granted the company’s motion for summary judgment, and Plaintiffs moved for reconsideration.

Regions Financial Corporation – Stember Feinstein Doyle & Payne represents participants in the Regions Financial 401(k) Plan over losses to the Plan’s assets.   The suit alleges that fiduciaries of the Plan violated ERISA by imprudently investing in Regions stock while the company was concealing Regions Financial’s large exposure to highly risky Collateralized Debt Obligations, subprime mortgages, and other poor-quality securities.    The case is pending in the United States District Court for the Western District of Tennessee.

Sovereign Bancorporation – Stember Feinstein Doyle & Payne represents participants in the Sovereign Bancorporation 401(k) Plan over losses to the Plan’s assets.   The suit alleges that fiduciaries of the Plan violated ERISA by imprudently investing in Sovereign stock while the company was concealing Sovereign’s large exposure to highly risky Collateralized Debt Obligations, subprime mortgages, and other poor-quality securities.    The case is pending in the United States District Court for the Eastern District of Pennsylvania.

Retiree Health Class Actions

Caterpillar – Stember Feinstein Doyle & Payne represents Caterpillar/United Auto Workers retirees who had their health benefits reduced.   The United States District Court for the Middle District of Tennessee denied the company’s motion to dismiss the lawsuit.  An appeal of the district court’s decision is pending before the United States Court of Appeals for the Sixth Circuit.

Chrysler – Stember Feinstein Doyle & Payne has been appointed interim class counsel to represent the approximately 125,000 hourly retirees (and their spouses, surviving spouses and dependents) in a lawsuit against Chrysler over threatened cuts to retiree health benefits.  This case is currently pending in the United States District Court for the Eastern District of Michigan.   The Court has granted preliminary approval of a proposed settlement of this lawsuit.  Members of the class who want to object to the settlement must file their objections in writing with a postmark on or before June 3, 2008.  The Court has scheduled a hearing to consider the fairness, reasonableness, and adequacy of the settlement for June 30, 2008 at 9:00 a.m. in Detroit.

Order Granting Preliminary Approval

Notice of Settlement

Settlement Agreement

Continental Tire – Stember Feinstein Doyle & Payne represents the United Steelworkers and retirees who manufactured tires for General Tire and Continental Tire in an action to restore their health benefits.  On August 1, 2007, the U.S. District Court for the Northern District of Ohio determined that the retirees’ benefits are vested and cannot be unilaterally changed.   On April 29, 2008, the Court granted preliminary approval of a proposed settlement of this lawsuit.  Members of the class who want to object to the settlement must file their objections in writing with a postmark on or before July 15, 2008.  The Court has scheduled a hearing to consider the fairness, reasonableness, and adequacy of the settlement for August 26, 2008 at 10:00 a.m. in Toledo, Ohio.

Order Granting Preliminary Approval

Cover letter to Class Members

Notice of Settlement

Names and Backgrounds of VEBA Committee Members

Settlement Agreement

Ex. 1 to Settlement Agreement (Form of Trust Agreement)

Ex. 2 to Settlement Agreement (Corporate Guaranty)

Ex. 3 to Settlement Agreement (Baseline PV Schedule)

Ex. 4 to Settlement Agreement (Draft Illustration of Hypothetical Payments Pursuant to Section 5.5.3)

Ex. 5 to Settlement Agreement (Baseline Data)

Ex. 6 to Settlement Agreement (Class Notice)

Crown Cork & Seal – Stember Feinstein Doyle & Payne represents the United Steelworkers and thousands of retirees who manufactured beverage cans for Crown Cork & Seal and Continental Can.   After suit was filed, the parties agreed to arbitrate this matter before retired U.S. District Court Judge Donald Ziegler who is based in Pittsburgh.  The arbitrator issued decisions finding in favor of the retirees who retired under the Master contract prior to May 2, 1993 and all non-Master retirees and against retirees who retired on or after May 2, 1993.   On April 7, 2008, the U.S. District Court for the Southern District of Ohio granted preliminary approval of a proposed settlement of this lawsuit.  Members of the class who want to object to the settlement must file their objections in writing with a postmark on or before June 9, 2008.  The Court has scheduled a hearing to consider the fairness, reasonableness, and adequacy of the settlement for July 18, 2008 at 9:00 a.m. in Cincinnati, Ohio.

Order Granting Preliminary Approval

Notice of Settlement

Settlement Agreement

Ford Motor Company -- Stember Feinstein Doyle & Payne represents approximately 150,000 hourly retirees (and their spouses, surviving spouses and dependents) in a lawsuit against Ford over threatened cuts to retiree health benefits.  This case is currently pending in the United States District Court for the Eastern District of Michigan.  On April 28, 2008, the Court granted preliminary approval of a proposed settlement of this lawsuit.  Members of the class who want to object to the settlement must file their objections in writing with a postmark on or before June 23, 2008.  The Court has scheduled a hearing to consider the fairness, reasonableness, and adequacy of the settlement for July 10, 2008 at 9:00 a.m. in Detroit.

Order Granting Preliminary Approval

Notice of Settlement

Settlement Agreement

General Motors --Stember Feinstein Doyle & Payne represents approximately 500,000 hourly retirees (and their spouses, surviving spouses and dependents) in a lawsuit against GM over threatened cuts to retiree health benefits.  This case is currently pending in the United States District Court for the Eastern District of Michigan.  On March 5, 2008, the Court granted preliminary approval of a proposed settlement of this lawsuit.  Members of the class who want to object to the settlement must file their objections in writing with a postmark on or before May 13, 2008.  The Court has scheduled a hearing to consider the fairness, reasonableness, and adequacy of the settlement for June 3, 2008 at 9:00 a.m. in Detroit.

Order Granting Preliminary Approval

Notice of Settlement

Settlement Agreement

Morton Salt – Stember Feinstein Doyle & Payne represents retirees who worked at Morton Salt mines throughout the United States.  The case is pending before the United States District Court for the Northern District of Ohio.  The court is currently considering the parties’ motions for summary judgment.

Insurance Class Actions

Life Investors Insurance Company – Stember Feinstein Doyle & Payne represents a class of cancer insurance policyholders in Pennsylvania challenging Life Investors’ reduction in its benefits payments for chemotherapy and radiation therapy.   In April 2006, Life Investors stopped paying benefits based on the charges set forth in healthcare providers’ bills as its policies required, and began paying reduced benefits based on the amounts the providers were paid by Medicare or other insurance.  On October 31, 2007, the court denied Life Investors’ motion to dismiss the case.  The lawsuit is pending in the United States District Court for the Western District of Pennsylvania and is now proceeding into the discovery phase.

Mercy Health Plans – Stember Feinstein Doyle & Payne represents policyholders of Mercy Health Plans in an action to recoup co-payments that were allegedly in excess of limits under Missouri law.  The action is pending in the United States District Court for the Eastern District of Missouri.

Security Plan Life Insurance – Stember Feinstein Doyle & Payne represent   policyholders who have been wrongfully denied benefits by Security Plan Life Insurance.  This case is currently pending in Judicial District Court for the Parish of St. Mary, Louisiana.

State Farm Property and Casualty Ins. Co. – Stember Feinstein Doyle & Payne represents a class of homeowners policyholders in Pennsylvania who were denied replacement cost benefits on personal property losses under policy forms FP-7923 and FP-7927 since October 29, 1996.  On August 30, 2005, the Court of Common Pleas of Allegheny County, Pennsylvania granted Plaintiff’s motion for summary judgment as to liability.  The case is now in the discovery phase as to the amount of damages.