On November 22, 2004, U.S. District Judge Samuel Der-Yeghiayan granted final approval to a proposed settlement in Household International, Inc. ERISA Litigation. Notice of the settlement was given to Class Members.
Clients sued Household International, Inc., the Administrative and Investment Committee of the Plan, William F. Aldinger, Edgar D. Ancona, Mary E. Bilbrey, Michael M. Carlson, Colin P. Kelly, and David A. Schoenholz for violation of the Employee Retirement Investment Security Act ("ERISA") because the Defendants allowed Householdâ€™s 401(k) Plan to hold and accumulate Household stock when the Defendants knew, or should have known, that such investments were not prudent.
The Settlement -- $46.5 million. In settlement of the case, the Defendants have agreed to reimburse class members for their alleged losses in the amount of $46.5 million. This money will be used to compensate class members, the class representatives, and the attorneys for the class. It will also be used to pay for the cost of litigation and the cost of settlement administration.
"It's not the first time William Aldinger has been sued and it won't be the last" said advocacy organization Household - HSBC Watch
. "Shea v Household didn't stop abuses, Fair Credit Billing violations continue to this day, and HSBC (Household) continues to injure and harm consumers for more than they ever pay out in settlements" said an unnamed source close to the organization.