The case has a settlement against the American Red Cross plans for savings and retirement. The claimant will be anyone who has ever had any funds in his or her account, from March 2, 2015, to March 31, 2025, beneficiaries at times, and possibly some alternate payees.
The other lawsuit in issue is under ERISA, or the Employee Retirement Income Security Act of 1974, which limits almost all acts concerning retirement and benefit plans to just a few exceptions. According to the plaintiffs, instead of administering these duties, fiduciaries incurred losses to the plan participants. The American National Red Cross and its Benefit Plan Committee are among the group of defendants.
Hearing on Fairness
A Fairness Hearing will be conducted in the U.S. District Court for the District of Columbia on October 7, 2025, at 2:00 p.m., and at this time, the Court will consider giving final approval of the Settlement. Upon final approval, the Settlement funds shall be held until the expiration of any and all rights of appeal.
Who Are Really the People Covered by This Settlement?
Anyone who has been a party to the settlement since the inception will be a part of the class, i.e., during the mentioned periods in the Red Cross Savings Plan or one of its predecessor, successor, merged or acquired plans. This has been purposively left wide so as to include any person who had some dealing with the plans in any form during the remedy period from 2015 to 2025.
Also included would be the beneficiaries and the alternate payees. Beneficiaries receive benefits; alternate payees receive benefits through a divorce decree. Included here are all people who would be benefiting under the plans. The only exceptions would be the defendants and their beneficiaries. This definition must be made clear, since it is to ensure that the overseers of the plan do not get paid if the participants and their families do.
What Is Happening Now?
The court received preliminary approval, now it awaits final approval. Hereafter, objections will be heard and the determination of the fairness of the settlement would be made in the Fairness Hearing, which is set for October 7, 2025.
Provided final approvals will be binding upon all class members, precluding them from further pursuing any individual lawsuits connected to claims resolved in this litigation. Appeal proceedings would delay any settlement at all. Hearings will take place at the U.S. E. Barrett Prettyman Courthouse at 333 Constitution Avenue, NW, Washington, D.C., 20001.
Advice to Settlement Class Members
Settlement Class members have a number of choices available to them depending on their status in the plan.
Firstly, any former participant who has not worked during the time of the claim within the Red Cross Savings Plan has to fill out the claim form, for which he becomes entitled to payment. This, therefore, shall have to be submitted by postal mail no later than October 9, 2025.
Another thing that would probably be discussed in the document is anything you can do if you disagree with the Settlement. Your objection must be filed with the Court by September 5, 2025.
All Class members must participate in the Fairness Hearing on October 7, 2025.
This is where class members will attend the hearing on October 7, 2025; for active participants, nothing further is required; they will have their benefits deposited directly into their active accounts. A former participant’s failure to act will mean no payment.
These provisions provide protection for the active or former participants. A fixed date has been put in place for the sake of clarity in an open and unrestricted flow of the process.
Distinction for Active and Former Participants
For the active account holders, the payment directly into the account is regarded as being the simplest payment method.
In the case of former participants, payment will never be made without the filing of a claim form. Only upon validation will payment be made directly to them. No payment will be made without the filing of such a form whatever the case may be concerning such participants.
Payment Distribution Outline
- Status Member Action Required: Payment Method
- Active Participant: No action required, Deposit into Account
- Former Participant: By mail complete claim form by October 9, 2025
- Beneficiary/Alternate Payee: Appropriate account as per status of member
An actual final distribution must be under court supervision to assure fairness for all members of the settlement class.
Importance of the Settlement
In fact, the settlement of the retirement plan Red Cross ERISA substantially augments the newly filed lawsuits in fiduciary issues. Fiduciaries must act in the best interest of the participant as dictated by ERISA. These mismanagement allegations, however, had of late spurred up, including against some high-profile names.
Thus, this settlement emphasizes that retirement plans for employees and beneficiaries are watched over. This implies that there are indeed legal measures to protect retirement saving whenever fiduciaries default in their duty toward such protection.
The ultimate goal is to keep fiduciaries under a watch by making them accountable and subject to due process requirements enforced within fixed timelines and through court approval.
Class Members’ Timetable
Date: Action
September 5, 2025: Deadline for Filing Objections
October 7, 2025: Fairness Hearing in Washington, D.C.
October 9, 2025: Final Deadline for Former Participants to Submit Claim Forms
October 20, 2025: Deadline for Former Participants to Submit Claim Forms
These dates provide guidance for participants to secure their benefits or raise concerns.
Conclusion
This agreement not only presents an opportunity for financial relief for Red Cross plan participants, but also serves as a reminder of the transparency, accountability, and legal protections of retirement plans.
FAQs
Q1: Who is eligible for the Red Cross ERISA Settlement 2025?
A1. Anyone who had an account balance in the Red Cross Savings Plan between March 2, 2015, and March 31, 2025, including beneficiaries and alternate payees.
Q2: When and where will the Fairness Hearing take place?
A2: The Fairness Hearing is scheduled for October 7, 2025, at 2:00 p.m. in the U.S. District Court for the District of Columbia.
Q3: How can former participants receive their settlement payment?
A3: Former participants must submit a completed claim form by October 9, 2025, to receive their payment by mail.
