Compliance November 4, 2010

IndyMac Stock-Drop Suit Reaches Settlement

Lawyers involved in a stock drop lawsuit against IndyMac Bancorp announced a $7 million settlement.
Reported by

The Keller Rohrback L.L.P. and Lewis, Feinberg, Lee, Renaker & Jackson, P.C. law firms said the money remaining after the payment of fees and expenses will be allocated to IndyMac Bank, F.S.B. 401(k) Plan participants who held company stock in their plan between July 1, 2006, and June 1, 2010.

According to the settlement notice, the settlement received preliminary approval from a federal judge who has scheduled a January 10, 2011 hearing to consider giving the agreement final approval.

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

The suit alleged plan fiduciaries violated the Employee Retirement Income Security Act (ERISA) by keeping the stock fund option in the plan when it was no longer prudent to do so (see Law Firm Focuses on Potential IndyMac Suit).

The U.S. Office of Thrift Supervision (OTS) closed the Pasadena, California.-based IndyMac and turned it over to the Federal Deposit Insurance Corp. (FDIC).  The move represented the biggest bank failure in years, as IndyMac was the second-largest mortgage lender in the United States and the seventh-largest savings and loan, with $32 billion in assets and $19 billion in deposits.

Deals & People November 4, 2010

DST Hires VP for Business Development

DST Retirement Solutions brought on Gary Lineberry as vice president.
Reported by

In his new role, Lineberry will focus on business development opportunities while establishing and managing long-term relationships with retirement search consultants and advisers.  

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

“Part of Gary’s charge is to educate the industry on the benefits of the ASP (or application service provider) and the BPO (or business process outsourcing) service model,” explained Jude Metcalfe, president of DST Retirement Solutions, in a press release.  

According to the announcement, Lineberry is an accomplished industry leader with more than 30 years’ experience in retirement services. He has held senior positions at Spectrem Group, AXA Financial, and Metropolitan Life. 

«