LAWSUIT FILED AGAINST SINGING RIVER DUE TO DEFUNCT PENSION PLAN
Dec 11, 2014
Mobile, Ala. – Attorneys with Cunningham Bounds, LLC (Mobile, Alabama)
and Reeves & Mestayer, PLLC (Biloxi, Mississippi) have joined together
in filing a class action complaint in the U.S. District Court for the
Southern District of Mississippi. The complaint names not only Singing
River Hospital, Singing River Health Services Foundation, and other Singing
River Health System (SRHS) entities – including its Board of Trustees,
but also the hospital’s auditor, KPMG, LLP and Transamerica Retirement
Solutions Corporation. The lawsuit alleges that the retirement plan is
severely underfunded and seeks damages so that the promises made to current
and former employees may be fulfilled.
“Information regarding Singing River’s Pension Plan indicates
that SRHS has not contributed funds to the Pension Plan to match its employees’
contributions since 2009. As a result, both current employees and retirees
were given false information about their retirement benefits for years.
As of November 2014, the plan was underfunded by at least $149 million,”
said Lucy Tufts of Cunningham Bounds. “Singing River and those named
in this suit need to be held accountable. Our firms are seeking a universal
solution and feel a class action lawsuit in Federal Court is the best
approach to recover the benefits owed through SRHS’s retirement
contract.”
A not-for-profit corporation, Singing River Health System (SRHS) operates
two Mississippi hospitals: Singing River Hospital in Pascagoula and Ocean
Springs Hospital in Ocean Springs. It also operates a number of community
medical clinics throughout the Gulf Coast. SRHS is currently the largest
employer in Jackson County, with approximately 2400 employees and more
than 600 retirees.
“This is the first federal suit to be filed against Singing River
Health System and their collection of partners,” said attorney Jim
Reeves. “This was intentional conduct by all parties. This was not
a mistake or an accident. Our federal fraud suit is a major turning point
for those employees and retirees affected by this retirement crisis.”
The firms offer these tips to concerned SRHS employees (current, former,
retirees):
- Review personal retirement documentation
- Take detailed notes during all employee updates from management
- Keep all retirement correspondence from Singing River management
- Before signing any documents, seek professional legal and financial counsel