ATT PENSION RISK TRANSFER CLASS ACTION
Consolidated Cases
Piercy et al v. AT&T INC, AT&T Services, Inc., and State Street Global Advisors Trust Co.
United States District Court, District of Massachusetts
Case No. 1:24-cv-10608 (filed March 11, 2024)
Schloss et al v. AT&T INC, et al.
United States District Court, District of Massachusetts
Case No. 1:24-cv-10656 (filed March 15, 2024)
Case Overview
On March 11, 2024, on behalf of a group of retirees who are participants in the AT&T Pension Benefit Plan (the “Plan”), Edward Stone Law P.C., Zuckerman Spaeder LLP, Kantor & Kantor, and Massachusetts counsel Libby Hoopes Brooks & Mulvey, P.C., filed a class action against AT&T, Inc., AT&T Services, Inc. and State Street Global Advisors Trust Co. alleging that the defendants violated their fiduciary duties and engaged in prohibited transactions under ERISA by entering into a pension risk transfer of more than $8 billion in pension plan liabilities through the purchase of group annuity contracts offered by Athene Annuity Life Insurance Company and affiliates.
Plaintiffs allege that AT&T and State Street (which served as the independent fiduciary for the 2023 pension risk transfer transaction), did not act prudently and in the best interests of the 96,000 participants and beneficiaries impacted by the PRT transaction when selecting Athene as the annuity provider to assume the Plan’s liabilities. Plaintiffs further allege that AT&T and State Street did not conduct an independent and impartial investigation when selecting Athene. Plaintiffs seek injunctive relief requiring AT&T to guarantee retirement benefits to the impacted Plan participants and disgorge the profits each earned in connection with the pension risk transfer. Plaintiffs also seek an order transferring the annuity contract(s) to the Plan and an order returning the affected retirees to their former status as plan participants.
A similar lawsuit was filed by another group of AT&T retirees in Schloss, et al. v. AT&T Inc., et al. on March 15, 2024 by the law firm of Schlichter Bogard LLP. In November, 2024, the Piercy litigation and the Schloss litigation were consolidated. All court filings are now being made under the Piercy case number in the U.S. District Court, District of Massachusetts. On November 8, 2024, the court appointed Zuckerman Spaeder (counsel for Piercy) and Schlichter Bogard (counsel for Schloss) as interim co-lead counsel.
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