Plaintiffs filed a class action complaint against Maersk on behalf of the Plan and a class of Plan participants, alleging certain claims for breach of fiduciary duty under the Employee Retirement Income Security Act of 1974 (“ERISA”).

Maersk has denied and continues to deny any and all of Plaintiff’s claims and allegations in their entirety, denies that it is liable to the Plaintiff or the Settlement Class members, and denies that the Plaintiff, Settlement Class Members, or the Plan have suffered any harm or damage for which Maersk or any Defendant could or should be held responsible. Maersk and the other Defendants assert that at all times their conduct was lawful. Maersk contends that the Plan has been managed, operated, and administered at all relevant times in compliance with ERISA and applicable regulations.

The Court has not decided in favor of either side in this Action. Instead, both sides agreed to a settlement. That way, both sides avoid the cost and risk of a trial, and the affected Current and Former Plan participants will get a benefit that they would not have otherwise received if Plaintiff had litigated the case and lost. The Class Representative and her attorneys believe the Settlement is in the best interests of the Settlement Class members and the Plan.

The Court decided that everyone who fits this description is a Settlement Class member:

All persons who participated in the Plan at any time during the Class Period, including any Beneficiary of a deceased Person who participated in the Plan at any time during the Class Period, and any Alternate Payee of a Person subject to a QDRO who participated in the Plan at any time during the Class Period. Excluded from the Settlement Class are the current and former members of the Pension Committee of Maersk Inc. during the Class Period.

The “Class Period” is defined as September 22, 2017, through the date the Court entered the Preliminary Approval Order.

Provided that the Settlement becomes Final, Maersk will pay $225,000 into a Qualified Settlement Fund to resolve the claims of the Settlement Class, as well as hold a request for proposal for Plan recordkeeping services with three years of the Settlement Effective Date. The Net Settlement Amount (after deduction of any Court-approved Attorneys’ Fees and Costs, Settlement Administration Expenses, Independent Fiduciary’s fees, Case Contribution Awards, and taxes) will be allocated to Settlement Class members according to a Plan of Allocation to be approved by the Court (as explained further under How much will be my payment). Allocations to Current Participants who are entitled to a distribution under the Plan of Allocation will be made into their existing accounts in the Plan. Former Participants who are entitled to a distribution will receive their distribution in the form of a check.

If the Settlement is approved by the Court, all Settlement Class members and anyone claiming through them shall be deemed to fully release the Released Parties from Released Claims.

The amount, if any, that will be allocated to you will be based upon records maintained by the Plan’s recordkeeper. Calculations regarding the individual distributions will be performed by the Settlement Administrator, whose determinations will be final and binding, pursuant to the Court-approved Plan of Allocation.

The Net Settlement Amount will also depend on the amount of any Attorneys’ Fees and Costs, Settlement Administration Expenses, Independent Fiduciary’s fees, and Case Contribution Awards that are awarded by the Court, as these will be paid out of the Qualified Settlement Fund of $225,000. Class Counsel will file a motion for an award of Attorneys’ Fees and Costs, Settlement Administration Expenses, and Case Contribution Awards at least 21 days prior to the objection deadline. This motion will be considered at the Fairness Hearing. Class Counsel will limit their application for Attorneys’ Fees to not more than one-third of the Gross Settlement Amount ($75,000.00), plus reasonable litigation costs advanced and carried by Class Counsel for the duration of the Action, not to exceed $25,000. In addition, Class Counsel will seek compensation for the Class Representative in the form of Case Contribution Awards in an amount not to exceed $5,000 for the Class Representative. The Court will determine the amount of Attorneys’ Fees and Costs, Settlement Administration Expenses, and Case Contribution Awards that will be awarded, if any. All papers filed in this action, including Class Counsel’s motion for Attorneys’ Fees and Costs, Settlement Administration Expenses, and Case Contribution Awards, will be available for review via the Public Access to Court Electronic Records System (PACER), available online at http://www.pacer.gov.

You do not need to file a claim to receive a Settlement Payment. Settlement recoveries will be distributed automatically in the following manner if the Court approves the Settlement:

“Current Participants” are current Plan participants who have a positive balance in their Plan account as of the date Settlement Payments are calculated. The Settlement Payments for Current Participants will be invested in accordance with the Current Participant’s current investment elections as proportionately as reasonably practicable. If a Current Participant has no investment election in effect, then his or her Settlement recovery will be invested in the Plan’s “Qualified Default Investment Alternative,” which is the Current Participant’s age-appropriate Fund. For payments to Current Participants into their Plan accounts, no taxes will be withheld.

“Former Participants” are individuals who had an active Plan account on or after September 22, 2017, but do not have a Plan account with a positive balance as of the date the Settlement Payments are calculated. Former Participants will receive payment under the Settlement in the form of a check with taxes withheld (if applicable) if there settlement amount is $10 or more and do not need to submit any paperwork to receive a payment under the Settlement.

The timing of the distribution of the Net Settlement Amount is conditioned on several matters, including the Court’s final approval of the Settlement and any approval becoming final and no longer subject to any appeals in any court. An appeal of the final approval order may take several years. If the Settlement is approved by the Court, and there are no appeals, the Settlement distribution likely will occur within six months of the Court’s Final Approval Order.

There will be no payments under the Settlement if the Settlement Agreement is terminated.

If the Court approves the Settlement, you will be bound by it and will receive whatever benefits you are entitled to under its terms. You cannot exclude yourself from the Settlement, but you may notify the Court of your objection to the Settlement. (See Notice.) If the Court approves the Settlement, it will do so under Federal Rule of Civil Procedure 23(b)(1) or (2), which does not permit Settlement Class Members to opt-out of the Class.

If you are a Settlement Class Member, you can object to the Settlement if you do not like any part of it. If you object, you must give the reasons why you think the Court should not approve the Settlement. To object, you must send a letter or other writing saying that you object to the Settlement in Leon v. Maersk, Inc. et al., Case No. 3:23-cv-00602-RJC-SCR (W.D.N.C.). Be sure to include your name, address, a statement that you are a Class Member, specific grounds for the objection (including all arguments, citations, and evidence supporting the objection); all documents or writings that you desire the Court to consider (including all copies of any documents relied upon in the objection); and your signature.

You must file your objection with the Court and the attorneys. It must be received no later than November 11, 2024. See your Notice for complete instructions.