What Is The Status Of The Edmonton Pipe Industry Pension Trust Fund Lawsuit?

Answer 1

The Edmonton Pipe IndustryHealth, Welfare & Pension Trust Funds16214-118 Avenue, Edmonton, Alberta T5V 1M6Tel: (780) 452-1331 . Fax: (780) 487-4063 . E-Mail: Epind@telusplanet.net . Website:epibenefitplans.comNotice From The Edmonton Pipe Industry Pension Trust FundCertain beneficiaries (the "Plaintiffs") of The Edmonton Pipe Industry Pension Plan (the "Plan") had a lawsuit in progress, seeking damages of approximately $49,000,000 from individuals who sat as Trustees of the Plan during a number of years up and including 2000 (the "Defendants").The Plaintiffs and the Defendants are pleased to announce that the litigation has been concluded and settled in the following manner.The Defendants had fiduciary liability insurance coverage obtained by The Edmonton Pipe Industry Pension Trust Fund (the "Fund") with a limit of $2,000,000. From this amount, the insurance company paid legal costs of the Defendants in the amount of $439,322.The Fund, by order of the Appeal Court of Alberta, was required to pay the legal costs of the Plaintiffs, and such costs amounted to $460,602. In addition, the Fund paid uninsured legal costs of the Defendants in the amount of $115,026 as required by the Pension Trust Agreements. The Fund also incurred direct legal costs of $343,266 and other related expenses of $13,101. In total, the Fund paid out $931,995 related to this matter.The settlement provides that the Fund is paid an amount of $1,403,507 from the insurance company, which includes payment of the amount expended by the Fund of $931,995.The settlement was made as a compromise to avoid further litigation and was expressly without any admission of liability on the part of the Defendants.

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