Home - George, et al. v. Garnet Health Medical Center

NOTICE OF CLASS ACTION SETTLEMENT
in
GARNET HEALTH MEDICAL CENTER 403(b) LITIGATION
George, et al. v. Garnet Health Medical Center,
Case No. 7:24-cv-6422-PMH (S.D.N.Y.)

PLEASE READ THE SETTLEMENT NOTICE CAREFULLY.
This is a notice of a proposed class action settlement in the above-referenced lawsuit.
If you are a member of the Class, the Settlement will affect your legal rights.
This is not a solicitation from a lawyer.
You have not been sued.

A Settlement has been reached in a class action lawsuit with respect to the Garnet Health Medical Center 403(b) Retirement Savings Plan and each of its predecessor plans or successor plans that were merged and/or acquired, individually and collectively, and any trust created under such plan (the “Plan”). The class action lawsuit involves whether the Plan has been administered by Defendant Garnet Health Medical Center (“Garnet”) in accordance with certain provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”). ERISA is the federal law that regulates and sets minimum standards for the administration of most retirement plans in the private sector, including the Plan. Defendant denies all claims, and nothing in the Settlement is an admission or concession on Defendant’s part of any fault or liability whatsoever.

The Settlement will provide, among other things, for a $4.6 million Settlement Fund that will be allocated to eligible Settlement Class Members after any Court-approved deductions for Attorneys’ Fees and Costs, Administrative Expenses, and Case Contribution Awards. In addition, within three years after the Settlement Effective Date, the Plan’s fiduciaries will conduct a request for proposal relating to the Plan’s investment advisor services and recordkeeping services.

Settlement Class Members who have an account in the Plan at the time that settlement distributions are made such that their distribution can be deposited into their individualized account in the Plan (referred to herein as “Current Participants”) will automatically receive allocations directly to their individualized accounts. Class Members who are not Current Participants have the option to receive their settlement distribution in the form of a check, or in the form of a tax-qualified rollover to an individual retirement account or other eligible employer plan if they elect a rollover. A Rollover Form allowing you to elect to receive your distribution in the form of a rollover is available HERE.

The terms and conditions of the Settlement are set forth in the Settlement Agreement dated October 30, 2025. Capitalized terms used in the Notice but not defined in the Notice have the meanings assigned to them in the Settlement Agreement. The Settlement Agreement is available HERE. Certain other documents also will be posted on that website. You should visit that website if you would like more information about the Settlement or the lawsuit. All papers filed in this lawsuit are also available for review via the Public Access to Court Electronic Records System (PACER), at https://www.pacer.gov.

The Settlement Class is defined as follows: All persons who were participants in or beneficiaries of the Plan at any time from August 26, 2018 through December 2, 2025, and any Alternate Payee of a Person subject to a QDRO who participated in the Plan at any time during the Class Period, excluding fiduciaries of the Plan.

Your rights and the choices available to you—and the applicable deadlines to act—are explained in the Notice. Please note that neither Garnet nor any employees, attorneys, or representatives of Garnet may advise you as to what the best choice is for you or how you should proceed.

The Court still has to decide whether to give its final approval to the Settlement. Payments under the Settlement will be made only if the Court finally approves the Settlement, and that final approval is upheld in the event of any appeal.

A Fairness Hearing will take place on April 20, 2026 at 2:30 PM before the Honorable Philip M. Halpern, United States District Court for the Southern District of New York, The Hon. Charles L. Brieant Jr. Federal Building and United States Courthouse, 300 Quarropas St., White Plains, NY 10601, in Courtroom 520, to determine whether to grant final approval of the Settlement and approve the requested Attorneys’ Fees and Costs, Administrative Expenses, and Case Contribution Awards. If the Fairness Hearing is rescheduled, or if it is held by video conference or telephone, a notice will be posted HERE.

Any objections to the Settlement, or to the requested Attorneys’ Fees and Costs, Administrative Expenses, or Case Contribution Awards must be served in writing on Class Counsel and Defendant’s counsel, as identified under question 11 of the Settlement Notice.

YOUR LEGAL RIGHTS AND OPTIONS UNDER THE SETTLEMENT:

If you are a Current Participant in the Plan:	You do not need to do anything to receive your share of the Net Settlement Amount. If, however, you do not have an account in the Plan at the time that distributions are made, you will receive your settlement distribution in the form of a check or rollover, if elected.
If you are not a Current Participant in the Plan:	You do not need to do anything to receive your share of the Net Settlement Amount by check. However, if you wish to receive your share of the Net Settlement Amount via a rollover to an individual retirement account or other tax-qualified plan, then you must submit a Rollover Form postmarked on or before April 20, 2026. A Rollover Form is attached to the Notice and also may be obtained by calling the Settlement Administrator at +1 800-485-6615 or by accessing HERE.
You can object (no later than March 30, 2026)	If you wish to object to any part of the Settlement, or to the requested Attorneys’ Fees and Costs, Administrative Expenses, or Case Contribution Awards, you must file and postmark your objection and any supporting documents with the Clerk of the Court, and mail copies to Class Counsel and Defendant’s counsel (as identified under question 11 below) at least 21 calendar days before the Fairness Hearing. Please note that you will not be permitted to make an objection to the Settlement if you do not comply with the requirements for making objections.
You can attend a hearing on April 20, 2026	You may also attend the Fairness Hearing and speak at the Fairness Hearing on April 20, 2026. If you wish to attend the hearing and speak at the hearing, you must provide Class Counsel and Defendant’s counsel (as identified under question 11 below) with notice of your intent to appear postmarked at least 21 calendar days before the Fairness Hearing. Please note that you will not be permitted to speak at the Fairness Hearing if you do not comply with the requirements for making objections.

The Class Action

The case is called George, et al. v. Garnet Health Medical Center, Case No. 7:24-cv-6422-PMH (S.D.N.Y.). It has been pending since May 7, 2024. The Court supervising the case is the United States District Court for the Southern District of New York. The individuals who brought this lawsuit are called the Plaintiffs or Class Representatives, and the entity that was sued is called the Defendant. Plaintiffs, Justin George, Arienne Patzelt, Melissa Zuber, and Tsu Han Poh-Gracia, are current and former participants in the Plan. Defendant is Garnet Health Medical Center. The claims in the lawsuit are described below under question 2, and additional information about them, including a copy of the Complaint, is available HERE.

The Settlement

Following negotiations between Plaintiffs, Class Counsel, Defendant, and Defendant’s counsel, which were overseen by an experienced neutral mediator, a Settlement has been reached. As part of the Settlement, a Qualified Settlement Fund of $4,600,000.00 will be established to resolve the claims against Defendant in the Action. The “Net Settlement Amount” is $4,600,000.00 minus any Administrative Expenses (including taxes, tax expenses, and certain other expenses), Court-approved Attorneys’ Fees and Costs, and Case Contribution Awards. The Net Settlement Amount will be allocated to Settlement Class Members according to a Plan of Allocation to be approved by the Court and further described below. In addition, within three years after the Settlement Effective Date, the Plan’s fiduciaries will conduct a request for proposal relating to the Plan’s investment advisor services and recordkeeping services.

Statement of Attorneys’ Fees and Costs, Administrative Expenses, and Case Contribution Awards Sought in the Class Action

Class Counsel has devoted many hours to investigating the facts, prosecuting the lawsuit, briefing dispositive motions, taking depositions and reviewing documents, and negotiating the Settlement. During that time, they also have advanced costs necessary to pursue the case. Class Counsel took the risk of litigation and have not been paid for any of their time or for any of these costs throughout the time this case has been pending.

Class Counsel will apply to the Court for payment of Attorneys’ Fees for their work in the case. The amount of fees that Class Counsel will request will not exceed one-third of the Qualified Settlement Fund ($1,533,333.33). In addition, Class Counsel also will seek to recover their litigation costs and administrative expenses associated with the Settlement. Any Attorneys’ Fees and Costs, Administrative Expenses, and Case Contribution Awards awarded by the Court will be paid from the Qualified Settlement Fund.

Class Counsel also will ask the Court to approve payments, not to exceed $7,500, for each of the Class Representatives who aided in the investigation, took on the risk of litigation, participated in discovery including their deposition, provided advice in advance of the mediation, and committed to spend the time necessary to bring the case to conclusion, including appearing at trial. Their activities also included assisting in the factual investigation of the case by Class Counsel, producing documents, and giving overall support to the case. Any Case Contribution Awards awarded by the Court will be paid from the Qualified Settlement Fund.

A full and formal application for Attorneys’ Fees and Costs, Administrative Expenses, and Case Contribution Awards will be filed with the Court on or before February 27, 2026. This application will be made available HERE. You may also obtain a copy of this application through the Public Access to Court Electronic Records System (PACER) at https://www.pacer.gov, or by appearing in person during regular business hours at the Office of the Clerk of the United States District Court for the Southern District of New York, The Hon. Charles L. Brieant Jr. Federal Building and United States Courthouse, 300 Quarropas St., Room 530, White Plains, NY 10601.