Welcome to the Settlement website for In re Beazer Homes USA, Inc. ERISA Litigation, Civil Action No. 1:07-CV-00952-RWS.  This website has been established to provide general information related to this litigation and the resulting Settlement.  The capitalized terms used on this website and not defined herein shall have the same meanings ascribed to them in the Stipulation and Agreement of Settlement.

 

Class Counsel is pleased to announce that the appeal period has expired.  Thus, the Settlement is now effective.  Please continue to visit this website for updates about the Settlement and allocation of Settlement funds.

 

 

In June 2008, Plaintiffs Patrick Denning and Lorene De Stefano, on behalf of themselves and the proposed Settlement Class, filed a Consolidated Complaint for Breach of Fiduciary Duty under the Employee Retirement Income Security Act of 1974 (“ERISA”) against Defendants Beazer Homes USA, Inc., Ian J. McCarthy, Brian C. Beazer, Fred Fratto, Jennifer Jones, George Schulmeyer, Peggy Caldwell, Katie Bayne, Larry T. Solari, and Stephen P. Zelnak, Jr.  In the Consolidated Complaint, Plaintiffs claimed that Defendants breached their fiduciary duties under ERISA by permitting the Beazer Homes USA, Inc. 401(k) Plan (the “Plan”) to invest in the Beazer Stock Fund even though Beazer stock was an imprudent investment for the Plan. 

 

 

 

On April 2, 2010, the Court issued its order granting in part and denying in part Defendants’ motion to dismiss.

 

 

On August 11, 2010, the Court entered an Order preliminarily approving the Settlement, preliminarily certifying a class for settlement purposes, approving form and manner of class notice and setting a date for a hearing on final approval of the Settlement.

The Settlement Class is defined as follows:

 

All persons who were participants or beneficiaries of the Plan at any time between July 28, 2005 and May 12, 2008 (the “Class Period”) and whose account(s) included investments in the Beazer Stock Fund. 

 

Excluded from the Settlement Class are Defendants, any entity in which the Defendants have or had a controlling interest, or which is or was a parent or subsidiary of or is or was controlled by Beazer Homes, and the current and former officers, directors, affiliates, legal representatives, heirs, predecessors, and assigns of Defendants.

           

The Settlement seeks class certification under the Federal Rules of Civil Procedure as a “non opt-out” class action because of the way ERISA operates.  Thus, it is not possible for any participants or beneficiaries to exclude themselves from the Settlement.  As a Settlement Class member, you will be bound by any judgments or orders that are entered in the Action for all claims that were or could have been asserted in the Action or are otherwise included in the release under the Settlement. 

 

The Defendants have agreed to create a Qualified Settlement Fund consisting of Five Million Five Hundred Thousand U.S. Dollars and zero cents ($5,500,000.00) to be divided among eligible Settlement Class members, after payment of any Court-approved attorneys’ fees and expenses, compensation payments to the Named Plaintiffs, and payment of other costs and expenses of the Settlement.  The Settlement Agreement describes the details of the proposed Settlement.  This Settlement releases certain claims against the Defendants with respect to the investment of the Plan’s assets in Beazer Homes stock during the Class Period.

 

A Fairness Hearing has been scheduled for 9:30 a.m. on November 15, 2010 before the Honorable Richard W. Story, United States District Court for the Northern District of Georgia, Atlanta Division, Richard B. Russell Federal Building and U.S. Courthouse, Courtroom 2105, 75 Spring Street SW, Atlanta, GA 30303-3309.   At the Fairness Hearing, the Court will decide whether to approve the Settlement.  The Court will also decide whether to grant Class Counsel’s application for an award of attorneys’ fees’, reimbursement of expenses and Named Plaintiff’s Case Contribution Awards. To date, Class Counsel have not received any payment for their services in prosecuting this Action on behalf of the Settlement Class, nor have they been reimbursed for their out-of-pocket expenses. 

 

If you have questions about the Settlement in In re Beazer Homes USA, Inc. ERISA Litigation, please send an email to: BeazerERISAsettlement@btkmc.com.  This email will go to Class Counsel and will be directed to the individuals handling the Settlement.  Class Counsel have also set up a toll free number, (866) 778-1167, if you prefer to call with your questions.