The American Red Cross has reached a settlement in a class action lawsuit concerning its Savings Plan and related retirement plans. The settlement covers anyone who held an account balance at any time between March 2, 2015, and March 31, 2025, including beneficiaries and alternate payees.
The case was filed under the Employee Retirement Income Security Act of 1974 (ERISA), which sets strict standards for the management of retirement and benefit plans. Plaintiffs alleged that the fiduciaries of the plan failed in their duties, causing financial harm to the plan’s participants. The defendants named in the case include the American National Red Cross and the Benefit Plan Committee of the American National Red Cross.
A Fairness Hearing is scheduled for October 7, 2025, at 2:00 p.m. at the U.S. District Court for the District of Columbia. The Court will decide whether to give final approval to the settlement. Payments will only be issued once the Court approves the agreement and any appeals are resolved.
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Who Is Covered Under the Settlement
The settlement class includes a wide group of individuals who participated in the Red Cross Savings Plan during the specified class period. It also extends to those connected to predecessor, successor, merged, or acquired plans. This broad definition ensures that anyone tied to the plan between 2015 and 2025 is potentially covered.
Beneficiaries and alternate payees, such as those entitled to plan benefits through inheritance or divorce decrees, are also included. However, the defendants themselves and their direct beneficiaries are excluded from the settlement.
This distinction is critical because it prevents those responsible for overseeing the plan from benefiting, while ensuring participants and their families can receive relief.
Status of Court Proceedings
At present, the settlement has received preliminary approval, but it is not yet final. The October 7, 2025 Fairness Hearing will determine the next stage. During this session, the Court will consider any objections and evaluate whether the settlement is fair and adequate.
If the Court grants final approval, the settlement will be binding on all members of the class. This means they cannot pursue separate legal actions regarding the same claims. However, the timeline for actual payments could extend further if appeals are filed after the hearing.
The venue for the hearing is the E. Barrett Prettyman U.S. Courthouse, 333 Constitution Avenue, NW, Washington, D.C. 20001.
Options for Settlement Class Members
Settlement class members have several options, depending on their status in the plan.
- Submit a Claim Form: Former participants who no longer have an active account must submit a claim form to receive payments. The deadline for this is October 9, 2025.
- Object to the Settlement: Members may file an objection if they disagree with the settlement terms. Objections must be submitted to the Court Clerk no later than September 5, 2025.
- Attend the Hearing: Members are invited to attend the Fairness Hearing scheduled for October 7, 2025.
- Do Nothing: Active participants with open accounts will automatically receive benefits if the settlement is approved. However, former participants who fail to act will not receive payment.
These options allow both active and former participants to safeguard their rights. The deadlines ensure the process is transparent and organized.
Payment Distribution Process
Payments will be distributed differently for active and former participants. Active account holders will automatically receive benefits deposited into their plan accounts. This ensures an efficient and secure payment process.
Former participants and their beneficiaries will be required to submit a claim form. Once verified, payments will be mailed to them directly. Without submission, no benefits will be issued, regardless of eligibility.
| Participant Status | Action Required | Method of Payment |
|---|---|---|
| Active Participants | None | Deposited into plan account |
| Former Participants | Submit claim form by Oct 9, 2025 | Mailed directly |
| Beneficiaries/Alternate Payees | Same as participant type | Based on account status |
The Court will oversee the final distribution process to ensure fairness across all settlement class members.
Significance of the Settlement
The Red Cross ERISA Settlement reflects the growing number of lawsuits related to fiduciary responsibilities in retirement plans. ERISA requires fiduciaries to act solely in the best interest of participants, and alleged mismanagement has led to several high-profile cases in recent years.
For employees and beneficiaries, the settlement serves as a reminder of the importance of oversight in retirement plans. It also highlights the legal avenues available to protect retirement savings when fiduciaries fail in their responsibilities.
By setting deadlines and requiring Court approval, the process ensures accountability while protecting participants’ rights under federal law.
Dates for Class Members
| Date | Action |
|---|---|
| September 5, 2025 | Deadline to file objections |
| October 7, 2025 | Fairness Hearing in Washington, D.C. |
| October 9, 2025 | Final deadline for former participants to submit claim forms |
These dates form the timeline participants must follow to secure benefits or raise concerns.
Frequently Asked Questions
Who is eligible for the Red Cross ERISA Settlement?
Anyone who had an account balance in the American Red Cross Savings Plan, or its related plans, between March 2, 2015, and March 31, 2025, is eligible. Beneficiaries and alternate payees of such participants are also covered.
Do current plan participants need to take action?
No. Active account holders do not need to take any steps. Settlement payments will be automatically deposited into their accounts if the settlement is approved.
What must former participants do to receive benefits?
Former participants must submit a Former Participant Claim Form by October 9, 2025. Without this form, no payments will be made, even if they qualify.
Can I object to the settlement?
Yes. Class members can file objections with the Court Clerk by September 5, 2025. They may also attend the October 7, 2025, Fairness Hearing to present their objections.
When will payments be issued?
Payments will only be made after the Court grants final approval and any appeals are resolved. The process may take additional time beyond the October hearing.