Frequently Asked Questions (FAQ)
- What is the Settlement about?
- When will Settlement payments be made?
- How do I know if I am a member of the Settlement Class?
- Who is excluded from the Class?
- Why is there a Settlement?
- What does the Settlement provide?
- How do I update my address with the Administrator if I have moved or have a new address?
- How were Settlement payments calculated?
- Do I have a lawyer in this case?
- Have the Class lawyers been paid?
- What if I do not want to be part of the Settlement?
- How do I object to the Settlement?
- When was the Fairness Hearing held?
- What happens if I did nothing?
- How can I obtain more information about the Settlement?
1. What is the Settlement about?
Savings Bank Life Insurance Company of Massachusetts ("SBLI") is a life insurance company headquartered in Massachusetts. On May 7, 1998, Richard Goldstein, Peter Hale and Barbara Sullivan (the “Named Plaintiffs”) brought a lawsuit ("the Action") against SBLI and its directors alleging that in certain years SBLI underpaid annual dividends to certain policyholders. Plaintiffs asserted that Massachusetts law (G.L. c. 175, §140 and 141) required SBLI to pay higher annual dividends to policyholders when its surplus (SBLI’s “retained profits”) exceeded the allowable limit and that SBLI failed to pay certain additional Special Dividends required by G.L. c. 178A, § 5.
SBLI has denied any liability in the Action since the inception of the Action, and the Court dismissed claims against SBLI's directors.
2. When will Settlement payments be made?
Settlement payment calculations are final and Class Members and other Authorized Claimants should have received correspondence regarding their settlement supplemental dividend payment in September 2010.
On July 19, 2011, the Court approved a secondary distribution of those funds that had been unclaimed by Class Members following the initial distribution in September 2010. The secondary distribution is to be mailed on or before July 31, 2011 to those Class Members who are eligible as defined and approved by the Court in the Order Concerning Final Distribution of Unclaimed Settlement Funds dated July 19, 2011. The checks will be valid for 60 days only, after which time the balance of any funds left unclaimed will be distributed equally to two non-profit organizations already designated by the Parties and approved by the Court, namely: the Massachusetts Public Interest Research Group, and the Massachusetts Affordable Housing Alliance. See the tab for "Court Documents" on this website for a copy of the Court’s order and related filings by the Parties.
3. How do I know if I am a member of the Settlement Class?
You are a Class Member if you owned an insurance policy issued by SBLI and held that policy: (1) on January 1, 1992 (“Subclass”), and/or (2) on at least one of the following dates -- December 31, 2000, December 31, 2001 or December 31, 2002 -- and were entitled to dividends for those years (“Main Class”) (collectively, "Class Members"). If you are the policy beneficiary of a deceased Class Member, or where there is no known living beneficiary, heir of a Class Member who has died, then you may have been eligible to receive a payment(s) in this Settlement.
4. Who is excluded from the Class?
Excluded from the Class are: Persons who held level premium term policies because these policies never received dividends. Also excluded are holders of credit life policies, extended term policies that do not provide for the payment of dividends, annuities that do not specifically provide for the payment of dividends, including all annuities issued on or after January 1, 1992, supplemental contracts without life contingencies, single premium term to age 22, decreasing term policies that never received dividends, and group life policies owned by SBLI or its shareholders. On this website you can see sample cover pages of these types of policies that are not in the class.
Also excluded from the Class is Defendant SBLI and its legal representatives, shareholders, directors, officers, successors-in-interest or assigns. None of the excluded persons or policies were entitled to receive any Settlement benefits.
If you are still not sure whether you are included in the Class, you can ask for free help from the Court-approved Settlement Administrator, The Garden City Group, Inc. (“Administrator”), by calling toll-free 1 (800) 254-7328 or by email at SBLISettlement@gardencitygroup.com.
After more than eleven years of litigation, including extensive litigation and Court proceedings, both sides in the Action have reached the conclusion that the Settlement, which provides substantial benefits to the Class, is in the interest of all Parties and will eliminate the expense, uncertainty and risks of continuing the suit. Based upon their investigation and evaluation, Plaintiffs have agreed to settle the Action after considering such factors as: (i) the benefits to the Class under the terms of the Settlement; (ii) the risks and uncertainty attendant upon litigation, especially class actions such as this, as well as the difficulties and delays inherent in such litigation; (iii) the likelihood of an extended appeals period even after a trial on the merits; and (iv) the desirability of consummating the Settlement promptly in order to provide relief to the Class. SBLI considers it desirable for the Action to be settled and dismissed because this Settlement will: (i) provide benefits to SBLI’s present and former policyholders; (ii) avoid further disruption of the management and operation of SBLI’s business due to the pendency and defense of the Action; (iii) put to rest the claims in the underlying matters; and (iv) avoid the substantial expense, burdens and uncertainties associated with continued litigation.
SBLI expressly denies any wrongdoing alleged in the Complaint (and all preceding complaints) and does not admit or concede any actual or potential fault, wrongdoing or liability in connection with any facts or claims that have been or could have been alleged against it in the Action. The Settlement is not, and it shall not be interpreted as, an admission of any liability or wrongdoing by SBLI. SBLI denies all Class Claims and is prepared vigorously to defend itself against them.
6. What does the Settlement provide?
The lawsuit has been settled for $18,675,330 in cash (an additional payment of $15,000,000 plus $3,675,330 that has already been paid to the Subclass), plus the costs of providing Notice and administering the Settlement. Main Class members received a minimum of five dollars ($5.00) per eligible policy but may have received more depending on the amount of calculated annual dividends deemed to have been paid on such policies in 2001 as determined in the following manner. First, the Court awarded Class Counsel, on behalf of all of Plaintiffs’ Class Counsel, Attorneys’ Fees in the amount of $7,500,000, plus their pro rata share of the interest earned by the Settlement Fund, as well as actual expenses of $436,658. Lead Class Counsel estimated that Attorneys’ Fees equal approximately 35% of the total Settlement value of $21,500,000, an amount that was approved by the Court. The remainder of $7.05 million plus interest constitutes the Net Settlement Fund remaining for distribution (this is in addition to the $3.675 million previously distributed). Second, the calculated annual policy dividends for each eligible policy were used to determine each Main Class Member's initial share (Settlement Dividend) of the Net Settlement Fund. Third, the Settlement Dividend also included a pro rata portion of those benefits initially set aside for policy beneficiaries or heirs who did not file claims. Fourth, Main Class members whose policies received annual dividends for 2000 or 2002 only (but not for 2001) were entitled to only the $5 minimum payment. Fifth, Subclass members (most of whom are also Main Class members) received a share of the Net Settlement Fund based on the amount of each Subclass Member's prior Special Dividends already received and other factors, as described in the Class Notice.
For Subclass Members, the amount of a recipient's share of the Settlement depended on several factors, as described in the Class Notice. The calculation of all Class Member payments was a multi-step process, which is described below and in more detail in the Class Notice.
7. How do I update my address with the Administrator if I have moved or have a new address?
If you have moved from the address provided on the Class Notice you received in the mail and you have not previously updated your address with the Administrator, or if you are about to move to a new address, please download and complete the Change of Address Form available on this website and return it to the Settlement Administrator, or provide your name and new address by email to SBLISettlement@gardencitygroup.com.
8. How were the Settlement payments calculated?
The method for calculating the Settlement Dividend that was paid to Class Members (and any other Authorized Claimants, i.e. policy beneficiaries or eligible heirs of deceased Class Members) (including the method for determining the Calculated Annual Dividend Amount) was set forth in detail in the Plan of Distribution which was approved by the Court, and overseen by the Administrator. The Plan of Distribution includes provisions that specify the following:
The Main Class
- All of the Main Class Members (and any other qualified Authorized Claimants) were each entitled to receive a single minimum Settlement Dividend of five dollars ($5.00) for each Policy, which amount is net of all Attorneys’ Fees and Expenses and Class Representative Awards (only one minimum payment will be made per Inforce Policy no matter how many years it was in force).
- Those Main Class Members (and any other qualified Authorized Claimants) who only held Policies on either December 31, 2000, or December 31, 2002, but not on December 31, 2001, each received only the $5 minimum for each policy because, under the legal theories litigated and settled by Plaintiffs, only a minimal Policy dividend, if any, would have been paid on these Policies (The vast majority of Class Members who held Policies in 2000 or 2002 also held Policies in 2001).
- Those Main Class Members (and any other qualified Authorized Claimants) who owned a Policy on December 31, 2001 and received an annual dividend for that year were entitled to a Settlement Dividend in excess of the $5 minimum for such Policy if: (1) pursuant to the formula in the Plan of Distribution, their pro-rata share of the Net Settlement Fund resulted in a distribution in excess of the $5 minimum, but (2) with the exception that those Authorized Claimants for 2001 who received a portion of the $3,675,330 Mitigation Payment in 2005 had their Settlement Dividend decreased by the amount of their pro rata share of Attorneys' Fees and Expenses and the Class Representative Awards in order that they pay their share of those fees and expenses attributable to the Mitigation Payment.
The Subclass
- All Subclass Members (and any other qualified Authorized Claimants) who did not receive a Mitigation Payment were eligible to receive a Settlement Dividend to compensate them for alleged unpaid Special Dividends net of Attorneys’ Fees and Expenses and Class Representative Awards (there was no minimum payment amount);
- Subclass Members who received a portion of the Mitigation Payment (Subclass 1) will not receive any more relief as a Subclass Member; however, all Members of Subclass 1 are also in the Main Class and were thus entitled to a Settlement Dividend payment from the Main Class as adjusted per the discussion above for the Main Class;
- Members of Subclass 2 (those with postmortem Policies) and Subclass 3 (those with lapsed, surrendered, matured or cancelled Policies) (and any other qualified Authorized Claimants) were entitled to receive an initial Settlement Dividend which provided that the amount of Settlement Dividends was based on the total amount of Special Dividends each Member of Subclass 2 and 3 was determined to have received previously from SBLI (and which does not include any of the Mitigation Payment). The Settlement Dividends compensated each Member of Subclasses 2 and 3 for their share, pursuant to the Plan of Distribution, of the unpaid $3.4 million in Special Dividends, plus statutory interest at 12% for the unpaid years such that Members of Subclasses 1, 2 and 3 received the same relative recovery. A separate calculation was made for each SBLI Policy held.
Please consult the Class Notice and the Plan of Distribution for more details.
9. Do I have a lawyer in this case?
Plaintiffs and the Class are represented by Plaintiffs' Lead Class Counsel of Adkins, Kelston & Zavez, P.C. in Boston, Massachusetts, in addition to other Plaintiffs’ Class Counsel: Barrack, Rodos & Bacine in Philadelphia, PA; Berman DeValerio in Boston, MA; and the Center for Insurance Research, Inc., in Cambridge, MA (through its counsel). You will not be charged personally for the services of these lawyers. Collectively, these lawyers are called “Plaintiffs’ Class Counsel.” If you want to be represented by your own lawyer, you may hire one at your own expense.
10. Have the Class lawyers been paid?
The Court awarded Class Counsel, on behalf of all of Plaintiffs’ Class Counsel, Attorneys’ Fees plus their pro rata share of the interest earned by the Settlement Fund, as well as actual expenses as described in No. 6 above. Prior to seeking Court approval, Lead Class Counsel determined that the total Plaintiffs’ Class Counsel Attorneys' Fees calculated on an hourly basis exceeded the amount awarded by the Court ($7,500,000) by the conclusion of this case. Lead Class Counsel litigated this heavily contested case for more than 11 years without any payment whatsoever, advancing the millions of dollars in time and expense necessary to prosecute this Action. The Attorneys’ Fees, costs and expenses, plus interest thereon, awarded by the Court, were paid out of the Settlement Fund on the Effective Date of Settlement to Plaintiffs' Lead Class Counsel for allocation to Plaintiffs’ Class Counsel as Lead Class Counsel deems appropriate and fair. SBLI did not oppose the petition for, or award of, fees, costs and expenses approved by the Court.
11. What if I do not want to be part of the Settlement?
You cannot exclude yourself (i.e., “opt-out”) from this Settlement since there is no such provision under the Massachusetts Rule of Civil Procedure 23. Therefore, all Class Members will be subject to the terms of the Settlement, including the general release of Class Claims, as defined in the Stipulated Settlement Agreement, available on this website.
12. How do I object to the Settlement?
Please note that the deadline to object to the Settlement has passed.
13. When was the Fairness Hearing held?
The Court held a hearing to decide whether to approve the Settlement at 2:00 p.m. (EDT) on May 20, 2010, at the Suffolk County Courthouse, Courtroom 1309, 3 Pemberton Square, Boston, MA 02108. The Court approved the Settlement at that time as fair, reasonable and adequate. The Court also approved the payment of fees, costs and expenses to Plaintiffs’ Class Counsel.
14. What happens if I did nothing?
If you did nothing and you are a current or former policyholder of SBLI with an up-to-date name and address on file with SBLI, and you received a Class Notice, you were paid a Settlement payment in the amount to which you were entitled (or, for some policyholders, paid in accordance with your choice for receiving policy dividends as stated in the Class Notice).
All beneficiaries or eligible heirs to a Class Member where there are no known living beneficiaries who have filed a timely claim must have filed the appropriate forms and did not receive payments under this Settlement unless they did so. For more details, please consult the Class Notice sent to the Class.
15. How can I obtain more information about the Settlement?
You can call, email or write to the Administrator. Call toll-free at 1 (800) 254-7328; email at SBLISettlement@gardencitygroup.com or write to the Administrator at SBLI Litigation Settlement Fund, c/o Settlement Administrator, The Garden City Group, Inc., P.O. Box 9472, Dublin OH 43017-4572; or view the Stipulated Settlement Agreement and other court documents, as well as any forms you need on this website. The Settlement Administrator was appointed by the Court to oversee and administer this Settlement, and any questions about the Settlement should be addressed to the Administrator. SBLI cannot address questions from Class Members about this Settlement. Please do not call the Court or the Clerk of the Court for additional information about the Settlement.
Fax: (206) 876-5295*
* You may fax questions or forms to the administrator, but are encouraged to use Internet, email or mail.
