Federal Judge Catherine C. Eagles approved a $650,000 settlement for approximately 100 Republic Mortgage Insurance Company employees in a written order filed on Nov 2, 2026. The deal resolves a class-action lawsuit alleging the company failed to protect retirement savings during its business shutdown.
The dispute traces back to 2021. Lead plaintiff Matt B. Allison argued that plan managers violated the Employee Retirement Income Security Act (ERISA) by keeping a Guaranteed Investment Account option active as the company entered a "run-off period." When the market value adjustment hit, it wiped out $1.3 million from employee accounts.
Republic Mortgage denied all wrongdoing, claiming it acted with care. But the court found the settlement fair after a year of mediation. Judge Eagles noted that only one worker opted out of the agreement, signaling broad acceptance of the terms.
The money breaks down like this: $214,450 goes to lawyers, $25,000 to Fiduciary Counselors, and $11,835 to settlement administrator Atticus. The remaining $400,000 flows directly into the retirement accounts of eligible members.
Atticus will now calculate individual shares and distribute the funds. The ruling closes the case in the U.S. District Court for the Middle District of North Carolina without the company admitting liability.