$19.4 Million Settlement Reached in H&R Block Express IRA Class Action
Stueve Siegel Hanson LLP served as lead counsel in a case against H&R Block alleging that the tax firm misled consumers in the marketing and sale of the "Express IRA" product.
This class action lawsuit alleged that consumers who opened Express IRAs lost money because H&R Block's fees for the accounts exceeded the interest earned by the accounts. The lawsuit further alleged that H&R Block failed to adequately explain the Express IRA's financial consequences and limitations and that H&R Block knew that the Express IRA was an unsuitable investment for most of its clients.
On August 14, 2006, the Judicial Panel on Multidistrict Litigations granted SSH's motion to transfer similar lawsuits that had been filed across the country to the United States District Court for the Western District of Missouri for centralization.
On January 22, 2010, the Court granted preliminary approval to a $19.4 million settlement providing for the repayment of program fees charged under the H&R Block Express IRA program and affording other relief to the class. The settlement is administered by Analytics, which was appointed by the Court to provide notice to the class and oversee the distribution of settlement funds. Notice regarding the settlement and how to participate were mailed to Express IRA customers during the month of March 2010.
On May 17, 2010, the Court granted final approval of the $19.4 million settlement.
