Under the Settlement, Lowe’s or its insurers will pay $12,500,000 into a Qualified Settlement Fund to resolve the claims of the Settlement Class against the Lowe’s Defendants. The Net Settlement Amount (after deduction of any Court-approved Attorneys’ Fees and Costs, Administrative Expenses, and Class Representative Service Award) will be allocated to Settlement Class Members according to a Plan of Allocation to be approved by the Court. Allocations to Participant Class Members who are entitled to a distribution under the Plan of Allocation will be made into their existing accounts in the Plan. Former Participant Settlement Class Members who are entitled to a distribution may receive their distribution as a check or, if they choose, as a rollover to a qualified retirement account.
In addition, the Settlement provides that: (1) within twelve (12) months after the Settlement Effective Date, the Administrative Committee will issue a request for proposal (“RFP”) for a delegated fiduciary investment manager for the Plan; (2) the Administrative Committee will engage an independent consulting firm (unrelated to Aon Hewitt) with experience conducting similar RFPs to assist with the RFP process; (3) the candidates in the RFP process will be free to propose alternative investment options, investment strategies, and/or investment lineup structures to the Administrative Committee; and (4) as part of the process, the Administrative Committee will consider all options presented, including maintaining the current investment manager, investment lineup structure, investment options, and/or investment strategies. All Settlement Class Members and anyone claiming through them will fully release the Plan as well as the Settling Defendants and the Released Parties from certain Plaintiff’s Released Claims, as defined in the Settlement Agreement. The Released Parties include each Settling Defendant, each Individual Administrative Committee Member, and certain related parties as outlined in the Settlement Agreement. The Plaintiff’s Released Claims include any claims against any of the Released Parties with respect to the Plan that were asserted in the Action against the Settling Defendants or could have been asserted against the Settling Defendants, including but not limited to those based on: (1) the selection, retention, or monitoring of the Aon Growth Fund, (2) the mapping of Plan assets to the Aon Growth Fund; (3) the selection, retention, or monitoring of Aon Hewitt; (4) the performance, fees, and other characteristics of the Aon Growth Fund, (5) Aon Hewitt’s performance or fees, or the services provided by Aon Hewitt to the Plan; or (6) the restructuring or modification of the Plan’s investment lineup. In addition, Plaintiff’s Released Claims also include certain other claims as set forth in the Settlement Agreement.
Aon Hewitt is not a Released Party under the Settlement. However, it is a condition of the Settlement that the Court enter an order barring Aon Hewitt from asserting certain claims against the Lowe’s Defendants and that any judgment that is later entered against Aon Hewitt in the Action will be subject to a judgment reduction equal to the amount that represents the proportionate share of fault that the Court attributes to the Lowe’s Defendants at trial, if any, with respect to the judgment. This is only a summary of the Released Parties and Settling Defendants’ Released Claims, and is not a binding description of either. The governing releases are found within the Settlement Agreement.