The 2025 ERISA settlement involving the American National Red Cross focuses on claims regarding the breaching of fiduciary duties involving the negligent management of its employees’ retirement savings plans. Litigation arose in the context of a failure of the Red Cross and its benefits plan committee to prudently monitor excessive fees, including the unauditable recordkeeping costs and underperforming investment funds turnover, during the period from March 2, 2015 to March 31, 2025. A settlement of $950,000 was reached to allocate to plan participants and beneficiaries for the alleged losses due to the mismanagement during the defined period.
Claims Process and Eligibility
Participants with an account balance in the American Red Cross Savings Plan within the defined period, including beneficiaries or alternate payees, will qualify for this settlement. Active account holders will automatically receive payments, which will be directly deposited into their accounts, and will not need to do anything. However, for the former participants, beneficiaries, or alternate payees without an active account, to receive their share which will be sent by check or rollover option, they will need to submit a claim form to us by October 9, 2025. Payment will not be sent to former participants for amounts under $10.
Court Hearings and Approval Process
One important proceeding in the settlement timeline is the fairness hearing, which will take place on October 7, 2025, at 2:00 PM in the U.S. District Court for the District of Columbia. This hearing will decide whether the court will grant final approval of the settlement. Preliminary approval was given on June 11, 2025. Settlement payouts will only be made to eligible claimants after final approval is given, all appeals are resolved, and the full judgment has been paid.
Payment Deadlines and Distribution
To receive payments, former participants must submit their claim form by October 9, 2025. Analytics LLC will be the settlement administrator, so all processing of payments, including verifying claims using plan records will be their responsibility. Payments will be distributed in direct deposits to active account holders or rolled over/issued checks after court approval. Payments are made on a pro-rata basis and will account for the balance in the individual’s account for each of the four qualifying quarters, minus court-approved attorneys’ fees and administrative costs.
Brief Data Table: Red Cross ERISA Settlement 2025 Key Dates and Details
| Item | Detail |
|---|---|
| Settlement Amount | $950,000 |
| Claim Deadline (Former Participants) | October 9, 2025 |
| Fairness Hearing Date | October 7, 2025, 2:00 PM |
| Period of Eligibility | March 2, 2015 – March 31, 2025 |
| Administrator | Analytics LLC |
Frequently Asked Questions
Do current account holders need to file a claim?
No, active account holders will receive payments by direct deposit.
What if my settlement amount is less than $10?
Participation means that amounts $9.99 or less will result in no payment. This does not apply to current participants.
When will payments be made?
Payments will be made once the judge approves the payments and all appeals have been resolved. As of now, there is no specific date.
