The multidistrict litigation centers on the African Methodist Episcopal Church Ministerial Retirement Annuity Plan, a non-ERISA retirement fund for the denomination’s clergy and employees. Plaintiffs allege that former plan executive director Dr. Jerome V. Harris and his business associate Robert Eaton engaged in a long-running scheme to misappropriate plan assets for their own benefit.
The Second Amended Complaint alleges that Symetra facilitated the scheme by allowing Harris and Eaton to enrich themselves through commissions, kickbacks, and prohibited transactions. Plaintiffs claim Symetra acquiesced to excessive administrative fees, paying Harris $3,500,300 between 2016 and 2019 alone.
According to the complaint, the alleged misconduct siphoned away roughly $90 million in plan assets. Plaintiffs’ expert testimony suggests the plan would have been worth as much as $272 million by June 2021 had it been prudently invested, compared to its actual value at that time.
The $44.4 million settlement represents approximately half of the $88.4 million difference between the plan’s misrepresented value and its true value as of June 2021. Interim Lead Class Counsel Matthew Lee stated the amount resulted from a mediator’s proposal following two rounds of mediation.
The court found the settlement was negotiated at arm’s length, citing the involvement of experienced mediators including retired Tennessee Supreme Court Justice Janice Holder and former federal judge Layn R. Phillips. The court also noted the settlement avoids the risks and delays of a trial currently set for September 14, 2026.
Under the proposed distribution plan, each class member will receive a pro rata share of the recovery automatically allocated to their retirement accounts. Class counsel may seek fees equal to one-third of the recovery, plus $490,000 in costs and $20,000 service awards for each named plaintiff.
The court conditionally certified the settlement class, defined as all U.S. residents who are participants or beneficiaries entitled to benefits as of January 1, 2021. Verita Global, LLC was appointed as the settlement administrator to handle notice and distribution.
Notice will be sent to class members by first class mail and email where possible. The court will set the date for the final approval hearing in a separate order.