The lawsuit alleges that Northern Trust breached its duties to
retirement plans and their participants and beneficiaries.
According to Plaintiffs, Northern Trust imprudently invested
collateral received from securities lending activities and, in
addition, charged impermissibly high fees. Northern Trust
denies any liability.
The proposed settlement has been achieved on behalf of
retirement funds that invested in Northern Trust's Commingled
Lending Funds, which participated in Northern Trust's securities
lending program, during the period January 1, 2007
through October 31, 2010. Plaintiffs brought suit under the
Employee Income Security Retirement Act (ERISA).
The case is Diebold, et al. v. Northern Trust Investments,
N.A. et al., No. 09-Civ-1934 (Diebold), pending
before Judge Charles Norgle in the United States District Court for
the Northern District of Illinois.
Final settlement in Diebold is conditioned on final
approval of the partial settlement of a related case,
Louisiana Firefighters' Retirement System, et
al. v. Northern Trust Investments, N.A., et al., Civil
Action No. 09-7203A (Louisiana Firefighters), which is
also pending in the Northern District of Illinois.
Louisiana Firefighters asserts claims based on
many of the same facts and circumstances underlying the claims in
Diebold, but on behalf of entities that are not
subject to ERISA.
Northern Trust has expressly denied and continues to deny all
assertions of wrongdoing or liability against them arising out of
any of the conduct, statements, acts, or omissions alleged, or that
could have been alleged.
The Settlement Class, appointed by the Court, is represented by
Bailey & Glasser, LLP, Berger & Montague, P.C., and Peiffer
Rosca Wolf Abdullah Carr & Kane, APLC.
Northern Trust is represented by Winston & Strawn LLP and
Mayer Brown LLP.
Todd S. Collins
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
P: (215) 875 3000