WASHINGTON—In a win 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, marking a major milestone in the Plaintiffs’ lawsuit seeking to recover over $90 million in misappropriated retirement savings and additional damages. Plaintiffs — represented by attorneys from AARP Foundation, Lee Segui, Lieff Cabraser, Kantor & Kantor, LLP, Osborne & Francis, and other firms — and AME Church settled their claims against Newport Group, Inc. for $40 million. Plaintiffs also settled claims against the AME Church for $20 million. Litigation is 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 others who dedicated their lives to serving their communities,” said 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 about 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 paid to invest and administer 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. Plaintiffs and the AME Church reached another agreement with Newport Group, Inc. in March 2025 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 that 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,” said 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. AME Church promised to contribute 12% of each clergy and staff member’s annual salary into a retirement plan that was supposed to be covered by the Employee Retirement Income Security Act (ERISA), a federal law that adds certain protection for plan participants. The salary and retirement contributions are paid through collections from individual local churches. Participants were told that their retirement funds were invested conservatively, but approximately $90 million was diverted over two decades to risky investments, commissions, and fees to self-interested parties.

The case involved six lawsuits that were consolidated in 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. 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.