$950K Red Cross Settlement Ends Lawsuit Over Allegedly Mismanaged Employee Retirement Plan

New to ClassAction.org? Read our Newswire Disclaimer

A $950,000 settlement has been reached to resolve multidistrict litigation that alleged that the American National Red Cross and its benefits plan committee failed to prudently monitor the fees and investment options in the Red Cross employee retirement savings plan.

Don’t miss the next class action settlement deadline. Sign up for ClassAction.org’s free weekly newsletter.

The court-authorized website for the Red Cross class action settlement can be found at RedCrossERISASettlement.com.

The deal covers anyone who participated in the American Red Cross savings plan at any time between March 2, 2015 and March 31, 2025, including any beneficiary of a deceased participant and any alternate payee of an individual subject to a Qualified Domestic Relations Order who participated in the plan during the qualifying period.

According to court documents, eligible class members are entitled to receive a pro-rated share of the $950,000 settlement fund after deductions are made for attorneys’ fees, administration expenses, taxes and service awards.

Related Reading: What is multidistrict litigation?

The official Red Cross settlement website says that plan participants (or beneficiaries or alternate payees of a participant) with an active account do not need to do anything to receive a payment. Red Cross settlement payouts will be paid directly into individuals’ plan accounts, the settlement agreement relays.

Former participants, or their beneficiaries or alternate payees, without an active plan account must submit a claim form by October 9, 2025 to receive a payment.

Red Cross settlement claim forms can be filed online on this page. Alternatively, class members may download a PDF claim form to print, complete and return by mail. Online claim form submission requires a unique claim number and PIN, which can be found on the settlement notice issued about the deal.

According to court documents, individual payment amounts will be based on each class member’s quarterly account balance during the qualifying period compared with the total sum of quarterly asset amounts in the plan during that time.

Related Reading: Red Cross Sued Over Retirement Plan’s Allegedly Imprudent Investment Options, Excessive Fees

Payments to former participants or their beneficiaries or alternate payees will be issued by check or may be rolled over to an individual retirement account or other employer plan, the settlement agreement states.

Class members who are no longer plan participants and would receive $9.99 or less from the deal will not be issued a settlement payment, the agreement notes.

The Red Cross settlement received preliminary court approval on June 11, 2025. Next, the court will decide whether to grant final approval to the terms of the deal at a hearing on October 7, 2025.

The class action settlement website adds that settlement payments will be issued to eligible class members only if the deal is ultimately approved and after any appeals are resolved.

The Red Cross lawsuit claimed that the nonprofit organization breached its fiduciary duties under the federal Employee Retirement Income Security Act (ERISA) by selecting and retaining poorly performing funds as investment options and allowing the plan to be charged excessive recordkeeping and administrative fees.

Are you owed unclaimed settlement money? Check out our class action rebates page full of open class action settlements.