The Bilello Action challenges the legality of the JPMorgan Chase Retirement Plan (the “Plan”), as well as the predecessor cash balance plans offered by:

• Chemical Bank;
• Manufacturers Hanover Trust; and
• The Chase Manhattan Bank.

The Bilello Action

On August 17, 2007, Frank Bilello filed his Class Action Complaint against Defendants, the JPMorgan Chase Retirement Plan and the JPMorgan Chase Director of Human Resources, as Plan Administrator.

On December 21, 2007, Plaintiff Bilello filed an Amended Class Action Complaint (the “Complaint”) on his behalf, and on behalf of a proposed class (the “Class”) of all others similarly situated, defined as all Plan participants who accrued benefits pursuant to the Cash Plan for Retirement of Chemical Bank and Certain Affiliates, Amended and Restated as of January 1, 1989, and all subsequent amendments and restatements thereto, whether active, inactive or retired, their beneficiaries and estates, whose accrued benefits or pension benefits are or were based in whole or in part on these Plans’ cash balance formulas from January 1, 1989 to the present for Counts 1-6, and January 1, 1989 to December 31, 2001 for Counts 7-9.  Plaintiff Bilello has not yet moved for class certification, and the Court has not certified a class.

The Complaint alleges that the Plan violates the Employee Retirement Income Security Act (“ERISA”) because it is backloaded, does not provide for a definitely determinable benefit, causes an illegal forfeiture of benefits, did not provide sufficient notice that the Plan’s conversion to a cash balance Plan effective January 1, 1989 caused a significant reduction in the rate of future benefit accrual, and that required summary plan descriptions and summaries of material modification did not comply with applicable law.

Plaintiff Bilello also brings two individual claims against the Plan Administrator for failure to provide requested Plan documents, and for a breach of fiduciary duty in connection with that violation.

On January 6, 2009, the Court issued an opinion and order denying Defendants’ motion to dismiss the claims to the extent Defendants argued the Plaintiff lacked standing to bring the suit because he had withdrawn his benefit in a lump sum. A copy of the opinion and order is available by clicking here.

On March 9, 2009, the Court issued an Opinion and Order denying Defendants’ motion to certify the January 6 Order for interlocutory appeal. A copy of the opinion and order is available by clicking here.

On April 10, 2009, the Court issued an Order denying Defendants’ motion to dismiss the claims to the extent Defendants argued Plaintiff had failed to exhaust his administrative remedies. A copy of the order is available by clicking here.

On April 10, 2009, the Court issued an Opinion and Order granting in part and denying in part Defendants’ motion to dismiss the claims by operation of the statute of limitations. The Court dismissed on statute of limitation grounds Counts 1, 2, 4 and 6 of the Complaint in their entirety and Counts 3, 7 and 8, in part.  A copy of the opinion and order is available by clicking here.

On April 20, 2009, the Court issued an Order directing the parties to submit supplemental briefing pertaining to the United States Court of Appeals for the Second Circuit’s recent decision in Kendall v. Employees Retirement Plan of Avon Products, 561 F.3d 112 (2d Cir. 2009). A copy of the Kendall v. Avon decision is available by clicking here.

On April 24, 2009, the Court issued an Opinion and Order dismissing Count 3 of the Amended Complaint and dismissing Count 7 of the Amended Complaint, except to the extent that it argues that the notice of the 1989 Plan was misleading or inaccurate. A copy of the opinion and order is available by clicking here.

On April 27, 2009, Plaintiff moved for reconsideration of the Court’s April 10, 2009 Opinion regarding the statute of limitations. A copy of Plaintiff’s memorandum in support of the motion for reconsideration is available by clicking here.

Defendants filed a supplemental brief concerning the Kendall v. Avon decision on May 8, 2009. It is available by clicking here.

On May 11, 2009, Defendants opposed Plaintiff’s motion for reconsideration of the Court’s April 10, 2009 Opinion regarding the statute of limitations. A copy of Defendants’ opposition is available by clicking here.

On May 18, 2009, Plaintiff filed a reply brief in support of his motion for reconsideration of the Court’s April 10, 2009 Opinion regarding the statute of limitations. A copy of Plaintiff’s reply brief is available by clicking here.

On May 27, 2009, Plaintiff filed a supplemental brief concerning the Kendall v. Avon decision, opposing Defendants’ Motion to Dismiss. Plaintiff also voluntarily withdrew Counts 2 through 5 and 9. A copy is available by clicking here.

On May 27, 2009, Plaintiff filed a Motion for Leave to File a Second Amended Class Action Complaint, and submitted a proposed Second Amended Class Action Complaint. A copy of Plaintiff’s memorandum in support of the motion is available by clicking here.  A copy of Plaintiff’s proposed Second Amended Class Action Complaint (without exhibits) is available by clicking here.

On June 8, 2009, the Court issued an Order dismissing Counts 2 through 5 and 9 of the Complaint for lack of subject-matter jurisdiction. A copy of that order is available by clicking here.

On June 19, 2009, Defendants opposed Plaintiff’s Motion for Leave to File a Second Amended Complaint. A copy of Defendants’ opposition is available by clicking here.

On July 2, 2009, Plaintiff filed a reply brief in support of his Motion for Leave to File a Second Amended Complaint. A copy of Plaintiff’s reply brief is available by clicking here.

On August 12, 2009, the Court issued an Opinion and Order granting Plaintiff’s motion for leave to file a Second Amended Complaint. A copy of the opinion and order is available by clicking here.

On August 19, 2009, Plaintiff filed his Second Amended Complaint. A copy of the Second Amended Complaint is available by clicking here.

On September 14, 2009, Defendants filed their Answer to the Second Amended Complaint. A copy of the Answer is available by clicking here.

On October 27, 2009, the Honorable Denise Cote stayed the proceedings in both the In re JPMorgan Chase Cash Balance Litigation and Frank Bilello v. JPMorgan Chase Retirement Plan, et al. after all parties agreed in principle to settle all remaining claims in those actions. A copy of the Endorsed Letter staying the proceedings is available by clicking here.

On March 3, 2010, the Court issued an Order granting preliminary approval of the Settlement, preliminarily certifying a Class for settlement purposes, and approving the Notice to the Class. A copy of the Order is available by clicking here.

On July 15, 2010, the Court entered an Order and Final Judgment granting final approval of the settlement and awarding out-of-pocket costs to some of the class representatives. A copy of the Order is available by clicking here.

If you have any questions about this litigation, please contact Counsel for Plaintiff. Contact information for that attorney is also available by clicking here.