Judge Approves Up to $650,000 Republic Mortgage Settlement
A federal judge granted final approval to a class action settlement over losses in an employee profit-sharing retirement plan.
Updated on Nov. 4, 2026 in Retirement Planning
Senior District Judge Catherine C. Eagles of the U.S. District Court for the Middle District of North Carolina gave final approval on November 2, 2026, to a settlement of up to $650,000 for participants in Republic Mortgage Insurance Company's profit-sharing plan. The suit, brought by lead plaintiff Matt B. Allison on behalf of about 100 plan members, alleged ERISA violations in how the plan's managers handled a guaranteed investment account.
Why it matters
The lawsuit claimed plan managers failed to remove the Guaranteed Investment Account option after December 2021 and did not reduce the risk of losses for workers. The settlement resolves the claims against the employer without any admission of wrongdoing.
The court approved $25,000 for the independent fiduciary representative and $11,835 in administrator operating costs. Individual distribution amounts have not been stated in the approved settlement summary.
The players
Catherine C. Eagles
Senior District Judge of the U.S. District Court for the Middle District of North Carolina who granted final approval to the settlement.
Republic Mortgage Insurance Company
Mortgage insurance company whose profit-sharing retirement plan was the subject of the class action and which is closing its mortgage insurance business.
Matt B. Allison
Former employee who served as lead plaintiff in the class action alleging ERISA violations in managing the plan's guaranteed investment account.
The details
Settlement funds will be paid directly into the retirement accounts of eligible members who did not opt out, with the administrator Atticus calculating each share. The lawsuit followed a run-off period at Republic Mortgage as it closed its mortgage insurance business.
Timeline
December 2021: Plan failed to remove the Guaranteed Investment Account option.
Late 2024: Class action lawsuit officially filed.
October 16, 2026: Fairness hearing held.
November 2, 2026: Judge granted final approval in a written order.
Market Dynamics
The case tests ERISA's fiduciary duties against plan managers who kept a guaranteed investment option after December 2021, a pattern courts have repeatedly reviewed in employer-sponsored retirement plans. Settlements of this kind show how fiduciary claims are resolved outside of trial.
Eligible plan members who did not opt out will receive settlement payments directly into their retirement accounts, covering about half of their calculated losses. Workers in employer-sponsored plans can review whether their own plans still offer guaranteed investment options with market value adjustment risk.
The takeaway
Plan participants should check whether their employer's retirement plan still offers investment options that carry market value adjustment risk. Reviewing plan documents and fee disclosures each year helps catch changes that affect retirement balances.
Further reading
For more on how these plans work, see Retirement Planning coverage for Greensboro readers.
