Mediation Helps Ex-BNA Employees Case Draw To A Close
On July 16th, a federal judge in Virginia tentatively approved the $4.7 million settlement for a class action lawsuit from ex-Bureau of National Affairs Inc employees. The lawsuit alleged that 401(k) employee participants were never informed about a merger between Bloomberg LP and BNA, a deal which cost $990 million.
A July 5th motion from the plaintiff, Judith King, set the terms for a tentative approval of the deal. The final “fairness hearing” will be scheduled for late October this year. The preliminary approval is an indication that on initial review, the settlement appears fair.
In 2011, Bloomberg and BNA announced official plans for a Bloomberg takeover, although King had cashed out her shares only a month earlier, causing her a $660,000 loss. Her argument states that BNA directors and the administrative committee for the plan were responsible for providing all plan participants with details that could be used to allow plan participants to develop investment decisions. As a result, she sued under the Employee Retirement Income Security Act.
Earlier this year, the court notified plan participants and beneficiaries of those with BNA plans and stock who sold that stock between March 10, 2011 and August 25, 2011. The majority of class members will receive about 80 percent of the difference between what they got for their plan shares and the $39.50 share price that was used by Bloomberg to purchase BNA shares.
The negotiations leading to this settlement were the result of a day’s worth of mediation sessions in front of a former federal judge, although the official settlement offer only came forward after an exhaustive discovery process and the deposition of 12 defendants. The counsel for the plaintiffs will be entitled to seek up to $1.4 million in costs and fees, and class counsel may also receive up to $8,800 as case contribution awards for King