SEATTLE, Dec. 12, 2006 (PRIME NEWSWIRE) -- Keller Rohrback L.L.P. today announced that the Honorable Avern Cohn of the United States District Court for the Eastern District of Michigan preliminarily approved a settlement of $7.6 million plus interest in a class action lawsuit brought under the Employee Retirement Income Security Act ("ERISA") against Visteon Corp. (NYSE:VC). The Settlement with Visteon Corp. will provide for payments to the Visteon Investment Plan and the Visteon 401(k) Savings Plan (formerly known as the Visteon Investment Savings Plan for Hourly Employees) and for allocation of those payments to the accounts of members of the Settlement Class who had portions of their Plan accounts invested in Visteon stock.
The Settlement Class includes all persons, other than the individual defendants and certain of the Defendants' family members and agents, who were participants in or beneficiaries of the Plans at any time between July 1, 2000 and July 15, 2006 (the "Class Period") and whose Plan accounts included direct or indirect investments in Visteon stock and/or the Visteon Stock Fund(s).
The Complaint alleges the Defendants were fiduciaries of the Plans and violated fiduciary duties under ERISA that they owed to current and former Plan participants and beneficiaries. Specifically, the Complaint alleges that during the Class Period the Plans invested in Visteon stock at a time when the Visteon stock was no longer a prudent investment for the Plans. Plaintiffs also assert that certain Defendants violated their fiduciary duties by misrepresenting information and failing to provide participants of the Plans with complete and accurate information about Visteon, and that certain directors failed to properly appoint and monitor members of Visteon's fiduciary Committees. The Complaint asserts causes of action for the losses suffered by the Plans as the result of the alleged breaches of fiduciary duty by the Defendants. The Defendants deny that they have liability to the Plans or the Plan participants or beneficiaries.
Lead Counsel in the case, Lynn Sarko of Keller Rohrback L.L.P., stated, "This proposed settlement would allow us to immediately restore retirement monies to current and former Visteon employees. If the settlement receives final approval, members of the Settlement Class could see their individual portions of the settlement restored to their retirement accounts as early as the spring of 2007." Plaintiffs are also represented by Executive Committee Counsel Schiffrin & Barroway, LLP, and Sprenger & Lang, PLLC, and Liaison Counsel Stephen F. Wasinger, of Stephen F. Wasinger PLC.
The hearing on final approval of the Settlement has been scheduled for March 9, 2007, before United States District Judge Avern Cohn, at the United States District Court, Eastern District of Michigan, Detroit, Michigan 48226. Official printed class notice packets explaining the details of the settlement are expected to be mailed to all class members within 2 weeks. Any objections to the settlement must be served by February 19, 2007.
Questions should be directed to Lynn Lincoln Sarko or Elizabeth Leland, of Keller Rohrback L.L.P., at (206) 623-1900, or Stephen F. Wasinger, of Stephen F. Wasinger PLC, at (248) 414-9900.