African Methodist Episcopal Church and Plaintiffs reach settlement agreement in retirement plan class-action lawsuit, unite to pursue claims against Newport and Symetra

COLUMBUS, Ohio — The African Methodist Episcopal Church (AME) and Plaintiffs (who represent a putative class of Plan Participants) have reached a contingent settlement agreement in the class action lawsuit concerning the misappropriation of retirement funds. The settlement is contingent on Court approval, but marks a significant step forward in addressing the financial harm caused to retirement plan participants and underscores the Church’s commitment to its members. 

Background

The AME Church was victimized by its own elected General Officer who, in coordination with several Defendants in this lawsuit, embezzled retirement funds and concealed the diversion of other retirement funds into unauthorized, risky investment vehicles over an extended period of years, for their own financial gain. The undisclosed diversion was discovered upon the retirement of the former General Officer and has resulted in significant financial losses for nearly all clergy members with investments in the retirement plan. After such a significant breach of trust a group of clergy plan participants filed class action lawsuits against their own Church to ensure accountability and redress. The Church understands why the plaintiffs filed those lawsuits and does not resent their efforts to seek a legal remedy for the loss of the plan’s retirement funds. We understand and share their frustration and we harbor no animosity whatsoever towards the plaintiffs. | More

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