Edward Jones 401K Settlement

Schultz v. Edward D Jones, Co. Frequently Asked Questions

  1. What is this lawsuit about?
  2. Am I a part of the Settlement Class?
  3. What is the Settlement?
  4. When is the Fairness Hearing?
  5. How do I Object to the Settlement?
  6. Do I need to appear at the Fairness Hearing?
  7. Do I have an Attorney in this matter?
  8. How will the Attorneys' Fees and Case Contribution Award be paid?
  9. How do I exclude myself from the Settlement?
  10. Who are the Defendants?
  11. Who are the Plaintiffs / Class Representatives?
  12. How do I get more information?
  1. What is this lawsuit about?

    This class action lawsuit was filed on August 19, 2016 on behalf of certain Plan participants. The lawsuit alleges that Defendants violated the federal Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1104(a), by choosing investment funds that the Edward D Jones & Co. Profit Sharing and 401K Plan ("Plan") offered based on whether Edward Jones had a corporate relationship with the fund’s provider, not whether the fund was a prudent investment option.  Plaintiffs allege that the Plan selected investment options that consisted predominantly of mutual funds managed by “partners” and “preferred partners” of Edward Jones — investment management companies that worked closely with Edward Jones brokers and agents and paid revenue sharing to Edward Jones based on Edward Jones marketing their funds to Edward Jones clients.  Plaintiffs further allege there were superior, less expensive investment options available that Defendants should have chosen for the Plan.  Plaintiffs also allege that Defendants caused Plan participants to pay excessive recordkeeping fees. 

    Defendants deny all allegations of wrongdoing, fault, liability or damage to the Plaintiffs and the class, deny that they have engaged in any wrongdoing or violation of law or breach of duty, or acted in any way that was not in the best interest of the Plan, and believe they acted properly at all times.  

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  2. Am I a part of the Settlement Class?

    The Court certified a Settlement Class, and the Settlement applies to and is binding on that Class. The Settlement Class is defined as:

    All current and former participants in the Plan who maintained a balance of any amount in the Plan at any point during the period from January 1, 2010 to December 13, 2018. 

    Defendants, including individual members of the Edward Jones Investment and Education Committee and the Edward Jones Profit Sharing and 401(k) Administrative Committee, as well as their beneficiaries, are excluded from the Class.

    Whether a person is a member of this Settlement Class is reflected in Edward D. Jones & Co., L.P.’s (“Edward Jones”) records.  

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  3. What is the Settlement?

    Edward Jones will cause $3,175,000.00  (the “Settlement Amount”) to be paid to settle the lawsuit.  This sum, after the deduction of reasonable amounts to be approved by the Court for Case Contribution awards to Plaintiffs and Attorneys’ Fees and Expenses, Administration Costs, and Taxes and Tax-Related Costs, will be distributed to participants in the Plan during the relevant period, pursuant to a Plan of Allocation approved by the Court. The details of the Plan of Allocation are available on the Notice Page of this website, and are generally calculated using the average year-end account balances of each participant during the Class Period. Pursuant to the terms of the Settlement Agreement, the Settlement Administrator has obtained Plan records and will pay your award, if any.  Consequently, all inquiries related to such distributions should be addressed solely to the Settlement Administrator, at info@edwardjonese401Ksettlement.com or by calling the Edward Jones Settleement helpline at (866) 455-3740.

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  4. When is the Fairness Hearing?

    The Court has scheduled a Fairness Hearing for April 18, 2019, which will take place at the United States District Court for the Eastern District of Missouri, located at the Thomas F. Eagleton U.S. Courthouse, 111 South 10th Street, St. Louis, Missouri 63102 in Courtroom 12 North.  The date and location of the Fairness Hearing is subject to change by order of the Court, which will appear on the Court’s docket for the case.  Please check the Dates and Deadlines Page of this website for the most up-to-date information regarding the Fairness Hearing.  

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  5. How do I Object to the Settlement?

    Prior to the Fairness Hearing, Class members can give reasons why they think the Court should not approve the proposed Settlement.  

    Objections must be filed with the Court Clerk on or before April 3, 2019.  Objections filed after that date will not be considered.  Any Class member failing to submit a timely objection will be deemed to have waived any objection he or she might have, and any untimely objection will be barred absent an order from the Court. 

    Objections must include:  (1) the case name and number; (2) your full name, current address, telephone number and signature; (3) a statement that you are a Class member and an explanation of the basis upon which you claim to be a Class member; (4) all grounds for the objection, with specificity, accompanied by any legal support known to you or your counsel; (5) a statement as to whether you or your counsel intends to personally appear and/or testify at the Fairness Hearing; (6) a list of any persons you or your counsel may call to testify at the Fairness Hearing in support of your objection, and (7) whether your objection applies only to you, to a specific subset of the class, or to the entire class.

    Class members who do not comply with these procedures, or who miss the deadline to file an objection, lose the opportunity to have their objection considered by the Court or to appeal from any order or judgment entered by the Court regarding the Settlement.

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  6. Do I need to appear at the Fairness Hearing?

    No, you are not required to attend the Fairness Hearing in order to stay in the Settlement Class.  

    Anyone who files and serves a timely written objection in accordance with the instructions above may also appear at the Fairness Hearing either in person or through qualified counsel retained at his or her own expense.  Those persons or their attorneys intending to appear at the Fairness Hearing must effect service of a Notice of Intention to Appear setting forth: (1) the name, address, and telephone number of the Settlement Class member, and (2) if applicable, the name, address, and telephone number of that Class member’s attorney — on Class Counsel and Defendants’ counsel (at the addresses set out below in FAQ 7) and file it with the Court Clerk by no later than April 3, 2019. Anyone who does not timely file and serve a Notice of Intention to Appear in accordance with this paragraph shall not be permitted to appear at the Fairness Hearing, except by Order of the Court for good cause shown.  Any comment or objection that is timely filed will be considered by the Court even in the absence of a personal appearance by the Settlement Class member or his or her counsel.

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  7. Do I have an Attorney in this matter?

    The Settlement Class is represented by Class Counsel. The attorneys for the Settlement Class are as follows:

    Gregory Y. Porter

    BAILEY & GLASSER LLP

    1055 Thomas Jefferson Street NW, Suite 540

    Washington, DC 20007

    Mark G. Boyko

    BAILEY & GLASSER LLP

    8012 Bonhomme Ave, Suite 300

    St. Louis, MO 63105

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  8. How will the Attorneys' Fees and Case Contribution Award be paid?

    Class Counsel will file a motion with the Court seeking approval of payment from the Settlement Fund of the expenses they incurred in prosecuting the case, reasonable attorneys’ fees, and a Case Contribution Award not to exceed $10,000 for each of the three Class Representatives.  Class Counsel intends to seek attorneys’ fees not to exceed one-third of the Settlement Fund, or $1,058,333.  The motion and supporting papers will be filed on or before March 19, 2019.  After that date, you may review the motion and supporting papers on the Court Documents page at www.edwardjones401ksettlement.com.  Any attorneys’ fees, expenses, and Case Contribution Award approved by the Court, in addition to the expenses incurred by the Settlement Administrator in sending this Notice and administering the Settlement, will be paid from the Settlement Fund.

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  9. How do I exclude myself from the Settlement?

    The Courts have certified that this is a non-opt-out Settlement Class.  This means that class members will not be permitted to exclude themselves from the Settlement.   If you would like to tell the court that they should not approve the Settlement or that there are elements that you would like to change, you should file an Objection.  

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  10. Who are the Defendants?

    Plaintiffs sued Edward D. Jones & Co., L.P., The Jones Financial Companies, L.L.L.P., the Edward Jones Investment and Education Committee, the Edward Jones Profit Sharing and 401(k) Administrative Committee and members of those committees.

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  11. Who are the Plaintiffs / Class Representatives?

    Valeska Schultz, Melanie Waugh and Rosalind Staley are the named plaintiffs and the representatives on behalf of all members of the Settlement Class in the lawsuit. 

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  12. How do I get more information?

    If there are any changes to these deadlines, the date of the Fairness Hearing, or Settlement Agreement, those changes will be posted to this Settlement website. You will not receive an additional mailed Notice with those changes, unless separately ordered by the Court. If you cannot find the information you need on this website, you may also contact 1-866-455-3740 or email the Settlement Administrator at info@edwardjones401kSettlement.com for more information. 

    Please do not contact the Court to get additional information.

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