Trials & Litigation
$675K settlement in go well with towards Schnader Harrison over alleged misuse of retirement funds will get preliminary OK
August 21, 2025, 9:22 am CDT
A federal choose in Philadelphia has preliminarily permitted a $675,000 settlement in a lawsuit claiming that Schnader Harrison Segal & Lewis used 401(ok) contributions to fund operations and make distributions to fairness companions when it suffered monetary difficulties. (Picture from Shutterstock)
A federal choose in Philadelphia has preliminarily permitted a $675,000 settlement in a lawsuit claiming that Schnader Harrison Segal & Lewis used 401(ok) contributions to fund operations and make distributions to fairness companions when it suffered monetary difficulties.
In an Aug. 19 order, U.S. District Decide John Milton Younge of the Jap District of Pennsylvania licensed the category and located that the settlement supplies substantial aid. The quantity represents 68% of the utmost that the category members would obtain at trial, his order mentioned.
Schnader Harrison introduced its dissolution in August 2023 after dropping about two-thirds of its attorneys.
A minimum of 46 revenue companions and counsel, in addition to their beneficiaries, are class members. The legal professionals had been assessed nonelective retirement contributions whereas working on the regulation agency between February 2018 and June 2023.
Defendants within the go well with embody the agency, its retirement and financial savings plan, and former Schnader Harrison legal professionals who labored as its fiduciaries.
The lawyer who sued, Jo Bennett, was appointed class consultant. She is now the employment and labor chair at CM Legislation. She didn’t instantly reply to an ABA Journal e mail searching for remark. Legal professionals from the Groom Legislation Group representing the defendants additionally didn’t instantly reply to a Journal e mail.
Younge had permitted the go well with to go ahead in July 2024, saying discovery was wanted to resolve factual disputes. One concern was whether or not the cash at concern ought to be thought of worker or employer contributions to the plan.
Younge’s July 2024 opinion mentioned Bennett had “plausibly alleged interrelated violations” of the Worker Retirement Revenue Safety Act of 1974. The regulation requires employers to segregate from its common belongings any quantities withheld from paychecks for contributions to the retirement plan “as of the earliest date on which such contributions … can moderately be segregated.”
Hat tip to Bloomberg Legislation and Law360, which lined the settlement earlier than its preliminary approval.
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