African Methodist Episcopal Church and Plaintiffs Reach Settlement in Retirement Plan Class-Action Lawsuit

The African Methodist Episcopal Church (AME) has reached a contingent settlement agreement in a class-action lawsuit concerning the misappropriation of retirement funds. The settlement, pending court approval, represents a significant step in addressing the financial harm suffered by retirement plan participants. The AME Church acknowledges the breach of trust committed by its own elected General Officer, who, in coordination with several defendants, embezzled retirement funds and concealed the diversion of other funds into unauthorized, risky investments over an extended period.

The undisclosed diversion was uncovered upon the retirement of the former General Officer, resulting in substantial financial losses for nearly all clergy members with investments in the retirement plan. A group of clergy plan participants filed class-action lawsuits to ensure accountability and redress the loss of retirement funds. The AME Church understands the plaintiffs’ efforts and does not resent their pursuit of legal remedies for the financial harm caused.

Despite the emotional and financial strain on both sides, the Church and the Plaintiffs have agreed on a settlement that provides immediate restoration of some funds and creates a pathway for restoring the balance of lost retirement funds. The Church remains committed to seeking full restoration for all plan participants, viewing the contingent settlement as a critical step toward that goal.

The settlement agreement allows the Church and Plaintiffs to continue pursuing claims against all remaining defendants, including Newport and Symetra, the corporate entities on whom the Church relied. Evidence from deposition testimony and newly discovered documents has revealed the significant culpability of these entities, which financially benefited from the fraudulent activities that led to the financial losses of innocent ministers and their families.

AME Church’s General Counsel, Douglass P. Selby, stated that the settlement allows the Church to refocus on restoring retirement benefits for its clergy members. The agreement demonstrates the Church’s commitment to addressing the financial harm and upholding the trust of its members. The ongoing pursuit of justice against the remaining defendants underscores the Church’s determination to hold all parties accountable for their roles in the financial misconduct.

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