Saxophonist Leads Musicians in Civil Suit Against Pension Fund and Wins $27 Million Settlement
A Philadelphia area saxophonist filed a lawsuit against a $2 billion pension fund for musicians and employers, and won a $27 million settlement, according to The Philadelphia Inquirer.
The civil complaint stated that management and labor trustees who oversaw the American Federation of Musicians and Employers' Pension Fund gambled away tens of millions on risky bets. They will now have to pay the fund $17 million. The plaintiffs' lawyers are seeking about $10 million in fees.
The agreement was made between lawyers for trustees for the joint plan and the musicians who brought the suit.
The money will be paid by trustees' board insurance.
"We have always taken our fiduciary responsibility seriously and acted prudently in the best interests of all Plan participants," James Chase said in a statement on behalf of the trustees.
In addition to the cash, the plan will also include reforms, including the appointment of veteran pension lawyer Andrew Irving as Neutral Independent Fiduciary Trustee for the plan.
Read more on The Philadelphia Inquirer.