Hartford Financial Service Group ERISA Litigation

Hartford Financial Service Group ERISA Litigation

This case involved all participants in the Hartford Investment and Savings Plan (the “Plan”), a 401(k) plan sponsored by the Hartford Fire Insurance Company of The Hartford Financial Services Group, Inc. (“Hartford” or the “Company”) during the period from December 7, 2007 through August 31, 2011.

Izard Nobel LLP was appointed as Co-Lead Counsel by the Court on January 21, 2009. The ERISA Plaintiffs filed their Consolidated Complaint on March 23, 2009. The Complaint alleged that Defendants breached their fiduciary duties to Plan Participants by allowing the investment of Plan assets into Company stock when it was not a prudent investment for retirement accounts. In particular, Plaintiffs alleged that Defendants knew or should have known that Hartford stock was an imprudent investment due to: (i) the Company’s exposure to losses from residential and commercial mortgage-backed securities in its investment portfolios; (ii) the Company’s exposure to investment losses due to investments in the troubled financials market, including investments in Lehman Brothers, AIG, Fannie Mae, Freddie Mac and Washington Mutual; (iii) the Company’s exposure to decreasing capital levels, due to the deterioration in asset values and a decline in earnings; and (iv) the effect of these problems on the Hartford’s variable annuity business.

On June 16, 2009, Defendants filed a Motion to Dismiss the Complaint. The Plaintiffs filed an Opposition to the Motion on August 28, 2009. Defendants filed a Reply to Plaintiffs’ Opposition on October 20, 2009. On January 13, 2009, the Court issued an opinion denying Defendants’ Motions to Dismiss.

The parties participated in court-supervised mediation and reached an agreement to settle the claims for $1.935 million. The Court held a fairness hearing on April 13, 2012 and issued an Order granting Final Approval of the Settlement.

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