MediaRoom – Press Releases
$60 Million Lawsuit Settlement Will Restore Earned Retirement Funds for Thousands of Church Employees and Retirees
WASHINGTON— In a significant victory for current and retired employees of the African Methodist Episcopal (AME) Church, a district court granted final approval of two class action settlements on August 18. This marks a crucial milestone in the Plaintiffs’ lawsuit aimed at recovering over $90 million in misappropriated retirement savings and additional damages. The Plaintiffs, represented by attorneys from AARP Foundation, Lee Segui, Lieff Cabraser, Kantor & Kantor, LLP, Osborne & Francis, and other firms, reached a settlement with Newport Group, Inc. for $40 million. Additionally, they settled claims against the AME Church for $20 million. Litigation is still ongoing against the remaining defendants, including Symetra Life Insurance Co.
“These settlements are hard-won victories and will bring much-needed financial relief to thousands of AME clergy and others who dedicated their lives to serving their communities,” stated William Alvarado Rivera, Senior Vice President of Litigation at AARP Foundation. “The settlements help restore critical retirement funds, without further delay and expense.”
In April 2022, AARP Foundation joined the class action lawsuit as co-counsel on behalf of approximately 4,500 AME Church employees and retirees to recover their lost retirement benefits. The suit alleged that AME Church leadership, its retirement services department, and the professionals responsible for investing and administering retirement plan funds breached their contractual and fiduciary commitments to clergy and other staff. In August 2024, Plaintiffs reached an agreement with AME Church to restore $20 million to the plan. Subsequently, in March 2025, they reached another agreement with Newport Group, Inc. to settle claims against it for an additional $40 million.
As part of the settlement, Newport denies any wrongdoing. The settlement funds will be deposited into a qualified trust, which will be administered by a third-party administrator and fiduciary.
“It’s been a long and difficult battle, and we’re not done, but this settlement is a major milestone in our efforts to collect every penny that these pastors lost,” remarked Matt Lee of Lee Segui, PLLC and Co-Lead counsel for Plaintiffs. “It’s hard to overstate what the restoration of these funds will mean for thousands of retired AME Church ministers. While we’re proud of the work our team has done so far, we will not relent until every stone is turned and every responsible party is held accountable.”
The African Methodist Episcopal Church is the oldest and one of the largest U.S. Protestant denominations and historically Black churches, boasting 2.5 million members and 7,000 congregations worldwide. The AME Church promised to contribute 12% of each clergy and staff member’s annual salary into a retirement plan that was supposed to be protected under the Employee Retirement Income Security Act (ERISA), a federal law designed to safeguard plan participants. The salary and retirement contributions are collected from individual local churches. Participants were assured that their retirement funds were invested conservatively; however, approximately $90 million was diverted over two decades to risky investments, commissions, and fees benefiting self-interested parties.
The case involved six lawsuits that were consolidated into a multi-district litigation in the Western District of Tennessee. The remaining defendants include Symetra Life Insurance Company, Robert Eaton, the Motorskills entities, Day and Night Solar, the Estate of Dr. Jerome Harris, and Sandra Harris.
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About AARP Foundation
AARP Foundation works for and with older adults to expand economic opportunity through strategic grantmaking, volunteer-driven community service, and legal advocacy so that everyone can age with dignity and purpose. The Foundation is a charitable affiliate of AARP. To learn more, visit aarpfoundation.org or follow @AARPFoundation on social media.
About Lee Segui, PLLC
Lee Segui PLLC is a nationwide litigation firm that goes all in – on strategy, on preparation, and for the plaintiffs we represent. Lee Segui focuses on representing plaintiffs in class actions, employment matters, defective consumer products, mass torts, and appellate litigation. To learn more, visit leesegui.com.
$60 Million Lawsuit Settlement Will Restore Earned Retirement Funds for Thousands of Church Employees and Retirees
WASHINGTON— In a significant victory for current and retired employees of the African Methodist Episcopal (AME) Church, a district court granted final approval of two class action settlements on August 18. This marks a crucial milestone in the Plaintiffs’ lawsuit aimed at recovering over $90 million in misappropriated retirement savings and additional damages. The Plaintiffs, represented by attorneys from AARP Foundation, Lee Segui, Lieff Cabraser, Kantor & Kantor, LLP, Osborne & Francis, and other firms, reached a settlement with Newport Group, Inc. for $40 million. Additionally, they settled claims against the AME Church for $20 million. Litigation is still ongoing against the remaining defendants, including Symetra Life Insurance Co.
“These settlements are hard-won victories and will bring much-needed financial relief to thousands of AME clergy and others who dedicated their lives to serving their communities,” stated William Alvarado Rivera, Senior Vice President of Litigation at AARP Foundation. “The settlements help restore critical retirement funds, without further delay and expense.”
In April 2022, AARP Foundation joined the class action lawsuit as co-counsel on behalf of approximately 4,500 AME Church employees and retirees to recover their lost retirement benefits. The suit alleged that AME Church leadership, its retirement services department, and the professionals responsible for investing and administering retirement plan funds breached their contractual and fiduciary commitments to clergy and other staff. In August 2024, Plaintiffs reached an agreement with AME Church to restore $20 million to the plan. Subsequently, in March 2025, they reached another agreement with Newport Group, Inc. to settle claims against it for an additional $40 million.
As part of the settlement, Newport denies any wrongdoing. The settlement funds will be deposited into a qualified trust, which will be administered by a third-party administrator and fiduciary.
“It’s been a long and difficult battle, and we’re not done, but this settlement is a major milestone in our efforts to collect every penny that these pastors lost,” remarked Matt Lee of Lee Segui, PLLC and Co-Lead counsel for Plaintiffs. “It’s hard to overstate what the restoration of these funds will mean for thousands of retired AME Church ministers. While we’re proud of the work our team has done so far, we will not relent until every stone is turned and every responsible party is held accountable.”
The African Methodist Episcopal Church is the oldest and one of the largest U.S. Protestant denominations and historically Black churches, boasting 2.5 million members and 7,000 congregations worldwide. The AME Church promised to contribute 12% of each clergy and staff member’s annual salary into a retirement plan that was supposed to be protected under the Employee Retirement Income Security Act (ERISA), a federal law designed to safeguard plan participants. The salary and retirement contributions are collected from individual local churches. Participants were assured that their retirement funds were invested conservatively; however, approximately $90 million was diverted over two decades to risky investments, commissions, and fees benefiting self-interested parties.
The case involved six lawsuits that were consolidated into a multi-district litigation in the Western District of Tennessee. The remaining defendants include Symetra Life Insurance Company, Robert Eaton, the Motorskills entities, Day and Night Solar, the Estate of Dr. Jerome Harris, and Sandra Harris.
###
About AARP Foundation
AARP Foundation works for and with older adults to expand economic opportunity through strategic grantmaking, volunteer-driven community service, and legal advocacy so that everyone can age with dignity and purpose. The Foundation is a charitable affiliate of AARP. To learn more, visit aarpfoundation.org or follow @AARPFoundation on social media.
About Lee Segui, PLLC
Lee Segui PLLC is a nationwide litigation firm that goes all in – on strategy, on preparation, and for the plaintiffs we represent. Lee Segui focuses on representing plaintiffs in class actions, employment matters, defective consumer products, mass torts, and appellate litigation. To learn more, visit leesegui.com.
