2014 RadioShack ERISA Litigation Proposed Class Action Settlement and Settlement Fairness Hearing

FORT WORTH, Texas, April 8, 2016 /PRNewswire/ -- The following is being released by Kessler Topaz Meltzer & Check, LLP pursuant to Order of the United States District Court for the Northern District of Texas in In re 2014 RadioShack ERISA Litigation, No. 4:14-cv-00959-O.

TO: ALL PERSONS WHO WERE PARTICIPANTS IN OR BENEFICIARIES OF THE RADIOSHACK 401K PLAN AND RADIOSHACK PUERTO RICO 1165(E) PLAN (COLLECTIVELY, THE "PLANS") AT ANY TIME FROM NOVEMBER 30, 2011 THROUGH JANUARY 7, 2016 ("CLASS PERIOD"), AND WHOSE ACCOUNTS IN THE PLANS INCLUDED INVESTMENTS IN RADIOSHACK STOCK.

PLEASE READ THIS NOTICE CAREFULLY.  A FEDERAL COURT AUTHORIZED THIS NOTICE. 

A class action lawsuit was filed in the United States District Court, Northern District of Texas by former employees of RadioShack Corporation, which now goes by the name RS Legacy Corporation ("RadioShack"), against members of the RadioShack 401(k) Plan Administrative Committee, the RadioShack Puerto Rico Plan Administrative Committee, James F. Gooch, Joseph C. Magnacca, Robert E. Abernathy, Frank J. Belatti, Julia A. Dobson, Daniel A. Feehan, H. Eugene Lockhart, Jack L. Messman, Thomas G. Plaskell, Edwina D. Woodbury, Mark Barfield, Karina Davis, Eric Hales, Justin Johnson, Michael Keyser, Kevin Krautkramer, Martin Moad, Sri Reddy (together, the "RadioShack Defendants"), and Wells Fargo Bank, N.A. and Banco Popular de Puerto Rico (the "Trustee Defendants), who were all alleged to be fiduciaries of the Plans.  The litigation (the "Action") alleged that defendants breached their fiduciary duties under the Employee Retirement Income Security Act of 1974, as amended ("ERISA").  A Settlement has been reached between Plaintiffs and the Trustee Defendants ("Settling Parties") for the amount of $900,000.00 (Nine Hundred Thousand U.S. Dollars) in cash (the "Settlement Payment").  To be clear, the allegations against the RadioShack Defendants (the "Non-Settling Defendants") have not been settled and are continuing.  The Settlement Payment will be held in a Qualified Settlement Fund and will be allocated pursuant to a Court-approved Plan of Allocation to Plan participants who were invested in RadioShack Stock during the Class Period.  A fairness hearing (the "Fairness Hearing") will be held on July 18, 2016, at 10:00 a.m. before the Honorable Reed O'Connor, United States District Court Judge, to determine, among other things (as set forth in the Settling Parties' proposed Final Approval Order): (1) whether the proposed Settlement should be granted final approval; (2) whether the proposed Plan of Allocation is fair, reasonable, and adequate; (3) whether Class Counsel's request for an award of attorneys' fees, expenses and for Case Contribution Awards to the Named Plaintiffs relating to their representation of the Settlement Class should be approved; (4) whether to approve the Bar Order (a) precluding Plaintiffs, Non-Settling Defendants, RadioShack and all other third parties from seeking relief from the Trustee Defendants in connection with the Claims alleged in the Action, and (b) ordering that any judgments entered against the Barred Persons under the Complaint will be subject to a Judgment Reduction pursuant to a proportionate offset method; and (5) whether the claims of the Settlement Class members against the Trustee Defendants should be dismissed on the merits with a direction to the Clerk of the Court to enter final judgment, finding that there is no just reason for delay of enforcement or appeal of the Order as set forth in the Stipulation filed with the Court.  The Fairness Hearing will be held at the United States District Court for the Northern District of Texas, Fort Worth Division, 501 W. 10th St., Room 201, the courtroom of Judge Reed O'Connor, or such other courtroom as the Court may designate.

You are a member of the Settlement Class if you fall within the definition of the Settlement Class preliminarily approved by Judge Reed O'Connor:

All Persons who were participants in or beneficiaries of the RadioShack 401(k) Plan and RadioShack Puerto Rico 1165(e) Plan at any time from November 30, 2011 through January 7, 2016, and whose accounts in the Plans included investments in RadioShack Stock.

If you are a member of the Settlement Class as defined above, your rights may be affected by the proposed Settlement and release of Parties and claims, as set forth in the Stipulation. 

You do not have the right to exclude yourself from the Settlement in this case, but you do have the right to object by writing to the Court.  Any objection to the Settlement must be filed with the clerk of the Court and served upon each of the following law firms no later than June 20, 2016, at the addresses listed below:

If the Settlement is approved by the Court and you are a Settlement Class member, you will receive any Settlement payment you are entitled to receive under the Stipulation without having to file a claim.

If you are a Settlement Class member and have not yet received the Notice, or if you want more information regarding anything in this Notice, you may obtain such information by visiting www.RSHTrusteeSettlement.com, calling toll‑free 877-522-0442, by writing to Class Counsel listed above or sending an email to [email protected].

DO NOT CONTACT THE COURT, RADIOSHACK, OR THE TRUSTEE DEFENDANTS OR THEIR COUNSEL REGARDING THIS NOTICE.  THEY WILL NOT BE ABLE TO ANSWER YOUR QUESTIONS.

SOURCE Kessler Topaz Meltzer & Check, LLP