Federal Court takes important next step towards preliminary approval of Settlement in the Singing River Health System Pension Lawsuit

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The Federal District Court took the next step towards preliminary approval of the proposed settlement agreement between Singing River Health System and pension plan members on Wednesday during a scheduled preliminary hearing.

The preliminary hearing was a review of the settlement agreement filed by Federal interim lead counsel Jim Reeves. The settlement includes:

    •  100% repayment of all missing money since 2009
    • Singing River Hospital must pay $149,950,000 to the retirement plan
    • Pension members will pay no attorney fees or expenses
    • Appointment of a Special Fiduciary as a “watchdog” for the trust
    • Continued court supervision of the pension plan and repayment
    • Appointment of new hospital trustees
  • No plan changes unless court-approved

Additionally, the Jackson County Board of Supervisors has agreed to support Singing River Hospital operations primarily to prevent a bond default and to support indigent care by paying an additional $13,600,000 to SRHS between 2016 and 2024.

Reeves & Mestayer law firm is seeking Final Certification of the Class Action Settlement which will result in a universal solution to the pension crisis.

“Granting preliminary approval means the Court has examined the materials submitted and determined that the proposed settlement appears fair,” said Matthew Mestayer. “This is not final approval but is a very important first step.”

The Court also appointed Mr. Reeves, who had previously been appointed interim class counsel, as co-lead class counsel going forward. Regarding the appointment, Reeves said, “I am honored by the appointment and intend to continue to work as hard as I can for the best possible result for the class members.”

Also appointed to serve as co-lead class counsel is attorney Steve Nicholas with Cunningham & Bounds, LLC from Mobile, AL.

The next step in Federal Court will be a “Fairness Hearing” scheduled for May 16, 2016 at 10 a.m., to determine whether the Class Settlement should be given final approval.

“The proposed settlement represents 100% of the money SRHS owes the plan and requires key changes at the hospital, like the resignation of trustees, which has already begun,” said Reeves. “Obtaining the benefits owed for all of those in the pension continues to be our top priority.”

Reeves & Mestayer Law Firm files SRHS pension settlement in Federal Court

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Click here to view the “Motion for Approval of Class Settlement.”

The law firm of Reeves & Mestayer is proud to announce that a settlement has been reached with Singing River Hospital and the individual defendants who managed Singing River Hospital and Jackson County. The petition to approve the settlement has been submitted before Federal Judge Louis Guirola. If preliminary approval is granted a fairness hearing could be scheduled within the next 60 days.

“This recovery represents 100% of the money owed,” said Jim Reeves. “Essentially, Singing River Hospital has agreed to pay back everything they owed into the retirement plan while making key changes at the hospital, including resignation of trustees so that new leadership will be in place going forward.”

One of the principle features of the settlement agreement is that Singing River Hospital must pay $149,950,000 to the retirement plan over time. They must also pay attorney fees of up to $6,450,000 and $125,000 in expenses.

“I am most proud of the fact that, as part of the settlement, retirees who worked hard for their benefits will not have to pay any fees or expenses for the recovery of their pension,” Reeves said. “This is unusual in these types of situations.”

In addition to Singing River Hospital’s role in the settlement, Jackson County has agreed to support Singing River Hospital operations primarily to prevent a bond default and to support indigent care. The County will also pay an additional $13,600,000 to SRHS between 2016 and 2024. The combined amounts account for all the monies SRHS failed to deposit between 2009 and 2014.

Other key elements of the settlement include the appointment, by Chancery Court, of a Special Fiduciary with sole responsibility to the trust. The current retirement plan cannot be changed without the Special Fiduciary and Chancery Court approval. The settlement also provides that the Chancery Court and Special Fiduciary will monitor the settlement, the retirement plan, and Singing River Hospital’s financial status.

“Over the past year, our goal has been to obtain, for those in the pension plan, the benefits they were promised, said Matthew Mestayer. “Jim and I have reviewed thousands of documents pertaining to SRHS’s failed pension plan in our pursuit of this settlement that will secure the pension well into the future.”

Jim Reeves was appointed as lead counsel for all the Federal lawsuits filed against Singing River Health System, and their collection of partners, by U. S. District Judge Louis Guirola, Jr. on June 5, 2015.

Reeves & Mestayer law firm has taken the following steps in the Southern District Federal Court on behalf of plan members:

  • Filed the first multi-count class action lawsuit against SRHS
  • Filed and won a Stay Order stopping SRHS from terminating the plan
  • Filed and won a Motion for the appointment of an Independent Trustee to manage the plan
  • Reviewed and rejected the initial settlement proposal from SRHS as the proposal lacked details and was a non-binding promise leaving retirees with no guarantees of payment
  • Gained a court ruling stating SRHS does, in fact, owe unpaid contributions to the pension fund

The law firm of Reeves & Mestayer was the first firm to file a federal multi-count class action lawsuit against Singing River Health System, Board of Trustees, TransAmerica Retirement, KPMG, Chris Anderson, and 13 others.

If you, or a family member, are in need of legal information or assistance, contact us here on our website or call Reeves & Mestayer, PLLC, at 228-374-5151 or toll free 1-855-558-2977.