Ferguson, et al. v. BBVA Compass Bancshares, Inc., et al.,

NOTICE OF CLASS ACTION SETTLEMENT, SETTLEMENT FAIRNESS HEARING, AND MOTION FOR ATTORNEYS’ FEES AND REIMBURSEMENT OF ATTORNEY EXPENSES.

The Settlement was granted final approval on June 14, 2024. To view the Final Approval Order and Final Judgment, please click HERE.

This notice advises you of the Settlement of Ferguson, et al. v. BBVA Compass Bancshares, Inc., et al., Case No. 2:19-cv-01135-MHH (N.D. Ala.) (the “Action”), a class action lawsuit brought by Gloria Ferguson and Cassandra McClinton (“Plaintiffs”) on behalf of themselves, the Compass Bancshares SmartInvestor 401(k) Plan (the “Plan”), and the Members of the Settlement Class described below against PNC Financial Services Group, Inc. (“Defendant” or “PNC”) (collectively with Plaintiffs, the “Parties”), as successor in interest to BBVA Compass Bancshares, Inc. (“BBVA”). The Action was brought under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). The Settlement releases Defendant and related parties from any claims filed against it in the Action. The terms and conditions of the Settlement are set forth in a Stipulation of Settlement (the “Stipulation”). Capitalized terms used in this notice but not defined in this notice have the meanings assigned to them in the Stipulation. The Stipulation and additional information with respect to the Action and the Settlement are available under the Case Documents tab of this website or by contacting Class Counsel.

The Parties have agreed to settle this case for $6,100,000 (the “Settlement Amount”). The Court has preliminarily approved the Settlement, which provides for allocation of Settlement funds to Members of the Settlement Class.

The Court has scheduled a hearing concerning final approval of the Settlement and Class Counsel’s motion for attorneys’ fees and expenses and for compensation to the Plaintiffs. That hearing, before the Honorable Madeline H. Haikala, is scheduled on April 18, 2024, at 11:00 a.m. CST. in Courtroom 7B at the Hugo L. Black United States Courthouse, 1729 5th Avenue North, Birmingham, AL 35203. If final approval is granted, the Settlement will bind you as a Member of the Settlement Class. You may appear at this hearing and/or object to the Settlement. Any objections to the Settlement or the motion for attorneys’ fees and expenses must be served in writing on Class Counsel. More information about the hearing and how to object is explained under the Frequently Asked Questions tab of this website.

YOUR LEGAL RIGHTS WILL BE AFFECTED WHETHER OR NOT YOU TAKE ANY ACTION. READ THIS NOTICE CAREFULLY. PLEASE DO NOT CONTACT DEFENDANT OR THE COURT. THEY WILL NOT BE ABLE TO ANSWER YOUR QUESTIONS.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT
You can do nothing. (No action is necessary to receive an allocated payment.)	If the Settlement is approved by the Court and you are a Member of the Settlement Class entitled to a payment under the Plan of Allocation, you do not need to do anything to receive a payment.
You can submit an objection. (It must be mailed and postmarked by April 4, 2024.)	If you wish to object to any part of the Settlement, you may write to Class Counsel and explain why, as described under the Frequently Asked Questions tab of this website.
You can appear and speak at the Fairness Hearing on April 18, 2024	If you submit a written objection to the Settlement before the Court-approved deadline and a notice of intent to appear (as described below), you may (but do not have to) speak in Court about the fairness of the Settlement.

Your rights and options—and the deadlines to exercise them—are explained in this notice.

Information concerning your individual share of the Net Settlement Fund, if any, will not be available for several months after the Court grants final approval of the Settlement and any appeals are resolved. Thank you for your patience.

SUMMARY OF CASE

As described in more detail below and in Plaintiffs’ Amended Complaint, this Action alleges that BBVA breached fiduciary duties owed to participants in and beneficiaries of the Plan during the Class Period. BBVA and Defendant, as successor in interest to BBVA, vigorously deny the allegations. A copy of the Stipulation of Settlement is available at under the Case Documents tab of the Settlement website.

SUMMARY OF SETTLEMENT

The Stipulation provides that Defendant will pay or cause its fiduciary insurance carrier to pay $6,100,000 in cash, which will be deposited into an account called the Settlement Fund. After payment of attorneys’ fees and expenses, costs of notice, costs and expenses of an Independent Fiduciary, payments to the Plaintiffs, if any, and any excess fees and expenses related to administration of the Settlement, the amount remaining in the account shall constitute the Net Settlement Fund. The Net Settlement Fund will be allocated among Members of the Settlement Class according to a Plan of Allocation to be approved by the Court.

STATEMENT OF POTENTIAL OUTCOME OF THE ACTION

Class Counsel believe that the claims against Defendant are well-grounded in law and fact and that breaches of fiduciary duty under ERISA occurred in this case. However, as with any litigated case, Members of the Settlement Class would face an uncertain outcome if the Action were to continue against Defendant. Continued litigation of the Action could result in a range of possible recoveries, including a judgment or verdict greater or less than the recovery under the Stipulation, or no recovery at all. Class Counsel also have taken into account the limited availability of insurance.

Class Counsel believe that this Settlement reflects a reasonable compromise in light of the range of possible outcomes. Class Counsel believe that the Settlement is preferable to continued litigation and is in the best interest of the Members of the Settlement Class because the Settlement provides certainty with respect to the amount of recovery and results in a prompt recovery.

Throughout this litigation, BBVA and Defendant have denied and continue to deny the claims and contentions alleged by Plaintiffs. Nevertheless, Defendant has concluded that it is desirable for the Action to be fully and finally settled as to it and the other Releasees on the terms and conditions set forth in the Stipulation.

The Court has not ruled in favor of either side. Both sides agreed to the Settlement to ensure a resolution and avoid the cost and risk of further litigation.

STATEMENT OF FEES AND EXPENSES INCURRED BY THE INDEPENDENT FIDUCIARY AND THE SETTLEMENT ADMINISTRATOR

An Independent Fiduciary is evaluating the Settlement and will be asked to authorize the Settlement on behalf of the Plan. The fees and expenses incurred by the Independent Fiduciary (including fees and expenses incurred by consultants, attorneys, and other professionals retained or employed by the Independent Fiduciary) in the course of evaluating and authorizing the Settlement on behalf of the Plan will be paid from the Settlement Fund.

A Settlement Administrator has been engaged to mail the notice to the Members of the Settlement Class, administer the Settlement and allocate the Net Settlement Fund among Members of the Settlement Class. The fees and expenses for the Settlement Administrator will be paid from the Settlement Fund.

STATEMENT OF ATTORNEYS’ FEES AND EXPENSES SOUGHT IN THE ACTION

Class Counsel will submit a fee petition to the Court in which they will ask the Court to award them attorneys’ fees, plus reimbursement of costs and expenses.