Current and former New York Life workers asked a New York federal court Wednesday to approve nearly $6.3 million in attorney fees in a $19 million proposed class action deal to end a suit accusing the insurance giant of unlawfully retaining shoddy proprietary investment options in their retirement plans.
NY Life Atty $19M Cut : Attorney Fees Justification
The plan participants told the court the figure represents 33% of the settlement fund and is in line with other attorney fees awards that courts have approved. The deal, which received preliminary approval in March, resolves the plan participants’ Employee Retirement Income Security Act (ERISA) lawsuit against the company.
The participants argued that the request is reasonable given the amount of work their counsel has put into the case without any payment. “Counsel from Cohen Milstein Sellers & Toll PLLC are seasoned class action practitioners who have successfully litigated numerous ERISA class actions involving similar claims,” the filing said. “In recognition of its work, Cohen Milstein’s employee benefits/ERISA group was named Practice Group of the Year in 2022 by Law360, and three out of four years combined.”
Service Awards for Named Plaintiffs
The filing also requests $10,000 service awards for each of the 10 named plaintiffs. The plan participants said these amounts are also consistent with similar awards courts have approved.
NY Life Atty $19M Cut : Background of the Lawsuit
Former New York Life employee Stuart Krohnengold initiated the lawsuit in March 2021, accusing the company of breaching its fiduciary duty to two 401(k) plans by including its proprietary MainStay funds in the plans despite warnings from outside consultants that the investment options failed to reach their benchmarks.