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Consent Agenda - B.C.C. 08.19.14 <br />Office of <br />INDIAN RIVER COUNTY <br />ATTORNEY <br />Dylan Reingold, County Attorney <br />William K. DeBraal, Deputy County Attorney <br />Kate Pingolt Cotner, Assistant County Attorney <br />MEMORANDUM <br />TO: Board of County Commissioners <br />FROM: Dylan Reingold, County Attorney (Y1-' <br />DATE: July 28, 2014 <br />SUBJECT: Healthcare Strategies, Inc., et al. v. ING Life Insurance & Annuity Co. Class Action <br />Lawsuit <br />BACKGROUND. <br />In 2005, Healthcare Strategies, Inc. filed a lawsuit against ING Life Insurance & Annuity Co. ("ING") <br />alleging that ING had breached its fiduciary duties under the Employee Retirement Income Security Act <br />("ERISA") and engaged in prohibited transactions under ERISA by contracting with mutual fund <br />companies to receive "revenue sharing" payments. In December, 2012, the United States District Court <br />for the District of Connecticut certified the proposed class. Since that time the parties in the lawsuit have <br />negotiated a settlement. Since Indian River County has been identified as a trustee, sponsor, fiduciary or <br />administrator of a 401(a) or 401(k) plan with ING, Indian River County has been provided the opportunity <br />to participate in the settlement. ING has agreed to pay a total of $14,950,000, inclusive of all claims for <br />attorney's fees and costs, as well as payment of case contribution fees and costs for administering the <br />settlement. <br />The Board of County Commissioners ("Board") has four options. The first is to submit a claim by <br />December 1, 2014, for Indian River County's portion of the settlement amount. In order to receive this <br />benefit, Indian River County will be required to release any rights it has with respect to this lawsuit. <br />The Board also has the option of excluding itself from the lawsuit by opting out of the settlement. The <br />Board would give up its right to receive money under the settlement, but would retain any rights to bring <br />its own lawsuit. The Board would be required to opt out of the settlement by September 3, 2014. <br />Approved for August 19, 2014 BCC Meeting <br />Consent Agenda <br />%or COdNTY ATTORNEY <br />F. Attorney LlndaGENERAL'B C C1Agendo Memos HeaIhcarr Ssramgies, Inc. v. ING Life Insurance.doc <br />118 <br />Indian River Co. <br />Approved <br />Date <br />Admin. <br />$I14i <br />Co. Atty. <br />t ,II. <br />7 Ih'i <br />Budget <br />b <br />$ . 4 <br />Department IA <br />(t <br />. f Dlily <br />Risk Management <br />--- <br />--- <br />118 <br />