Philadelphia, PA – A Pennsylvania federal judge has granted preliminary approval to a $675,000 settlement in the lawsuit alleging that former Schnader Harrison Segal & Lewis LLP misdirected funds intended for attorneys’ retirement accounts.
U.S. District Judge John M. Younge certified a class of “income partner or counsel” participants in the now-defunct law firm’s retirement and savings plan, covering the period from February 2018 through June 2023. The settlement resolves claims that Schnader Harrison violated the Employee Retirement Income Security Act (ERISA) by failing to deposit deducted funds into employees’ retirement accounts.
“The class consists of at least 46 individual plan participants and their beneficiaries,” Judge Younge wrote. “The common issues include whether fiduciary duties were breached, whether prohibited transactions occurred, and what the appropriate relief should be for violations of ERISA.”
Jo Bennett, now employment and labor chair at Culhane Haughian & Walsh PLLC, was appointed as lead plaintiff and class representative. Attorneys R. Joseph Barton of The Barton Firm LLP and Adam Harrison Garner of The Garner Firm Ltd. were named co-lead counsel. Bennett filed suit in February 2024 against the firm and its former equity partners.
The complaint alleged that Schnader Harrison commingled deferred compensation with its general operating funds instead of depositing it into the retirement fund, using the money to stabilize operations while continuing distributions to equity partners.
The proposed settlement establishes a $675,000 fund, with class members receiving shares based on their alleged losses. Funds will be placed in a special subtrust of the retirement plan, allowing for rollovers into other retirement accounts.
Judge Younge approved the preliminary terms, directing notification to class members by October 20. Objections may be submitted by December 19, with a final approval motion due January 2.
Plaintiffs are represented by Adam H. Garner and Melanie J. Garner of The Garner Firm Ltd. and R. Joseph Barton of The Barton Firm LLP. Schnader Harrison is represented by William J. Delany, Andrew D. Salek-Raham, Lars C. Golumbic, and M. Caroline Wood of Groom Law Group.
