A class action is a lawsuit in which one or more plaintiffs – in this case current and former Plan participants – sue on behalf of a group of people who allegedly have similar claims. After the Parties reached an agreement to settle this case, the Court granted preliminary approval of the Settlement. Among other things, this preliminary approval permits Class Members to voice their support for or opposition to the Settlement before the Court makes a final determination as to whether to approve the Settlement. In a class action, the court resolves the issues for all class members.

Plaintiffs filed a class action complaint against Defendant Cerner and the other Defendants on behalf of a class of Plan participants alleging that Cerner breached its fiduciary duties under ERISA in connection with the selection and monitoring of certain of the Plan’s investment options. Specifically, Plaintiffs alleged that Defendants breached their fiduciary duties by (1) offering and retaining unduly expensive investment options in the Plan and (2) paying excessive administrative fees for the Plan. After the lawsuit was filed, another class action lawsuit was filed on April 14, 2020 in Kansas by Plaintiff Joshua Clark titled Clark v. Cerner Corporation, et al., Civil Action No. 2:20-cv-02194-EFM-TJJ, ECF No. 1. In addition to alleging the claims in the first lawsuit, Mr. Clark alleged Defendants breached their ERISA fiduciary duties by concentrating the Plan’s investments in Cerner stock. Mr. Clark voluntarily dismissed his lawsuit on January 15, 2021, but this Settlement encompasses his claims and Mr. Clark is a Class Representative in this Settlement. A more complete description of what Plaintiffs allege is in the Second Amended Complaint, which is available here. Cerner denies Plaintiffs’ claims of wrongdoing or liability against it and asserts that its conduct was lawful. Cerner is settling the Action solely to avoid the expense, inconvenience, and inherent risk and disruption of litigation.

The Court has not decided in favor of either side in the case. Instead, both sides agreed to a settlement. In a settlement, both sides avoid the cost and risk of a trial, and the affected current and former Plan participants will get benefits that they would not have received if Plaintiffs had litigated the case and lost. The Plaintiffs and their attorneys think the Settlement is in the best interests for everyone who participated in the Plan during the Class Period. Cerner denies Plaintiffs’ claims of wrongdoing. Cerner is settling the Action solely to avoid the expense, inconvenience, and inherent risk and disruption of litigation.

The Court decided that everyone who fits this description is a member of the Class:

All persons who were participants in or beneficiaries of the Plan at any time from January 21, 2014 to the date the Settlement was preliminarily approved by the Court, which is March 5, 2021.

The Court has excluded from the Class: Defendants and any individuals who were members of the Compensation Committee or the Retirement Plan Committee from January 21, 2014, through the date of the Settlement Agreement.

If you meet the definition above, you are a member of the Class.

Cerner has agreed to pay $4,050,000.00 to Class Members. That amount, less amounts for expenses associated with administering the Settlement, the Independent Fiduciary (not to exceed $25,000), taxes, tax expenses, as well as attorneys’ fees, litigation expenses, and incentive awards to Plaintiffs (the latter three categories of which must be approved by the Court), is the “Net Settlement Fund” The Net Settlement Fund will be allocated to Class Members in accordance with a Plan of Allocation that is based on his or her Plan account balance that is invested in one or more of the Disputed Investments. The Plan of Allocation is detailed in your Notice.

Class Members do not have to submit claim forms in order to receive settlement benefits. The benefits of the Settlement will be distributed automatically once the Court approves the Settlement, either to Class Members’ Plan accounts (for current Plan participants) or by check (for former Plan participants, and eligible Beneficiaries and Alternate Payees of Class Members).

Former Plan participants who would prefer to receive their settlement payment through a rollover to a qualified retirement account must complete, sign, and mail the Former Participant Rollover Form by July 12, 2021. The Former Participant Rollover Form is available here. Former Plan participants who fail to complete, sign, and mail their Former Participant Rollover Form will receive their Settlement distribution by check.

If you are a current Plan participant, then you will receive your pro rata share of the Net Settlement Fund in the form of a deposit into your Plan account effective no later than forty (40) days after the Settlement has received final approval and/or after any appeals have been resolved in favor of the Settlement. The hearing to consider the final fairness of the Settlement is scheduled for July 22, 2021. Any eligible Beneficiaries or Alternate Payees will receive their payment under the Settlement in the form of a check issued within forty (40) days after the Settlement has received final approval and/or after any appeals have been resolved in favor of the Settlement. If you are a former Plan participant (or a Beneficiary or Alternate Payee of such participant) who timely submits a Former Participant Rollover Form, the Settlement Administrator will effect a rollover of your pro rata share of the Net Settlement Fund to your qualified retirement account selected in that form within forty (40) days after the Settlement has received final approval and/or after any appeals have been resolved in favor of the Settlement. If you are a former Plan participant (or a Beneficiary or Alternate Payee of such participant) who does not submit a Former Participant Rollover Form, a check in the amount of your pro rata share of the Net Settlement Fund will be issued to you within forty (40) days after the Settlement has received final approval and/or after any appeals have been resolved in favor of the Settlement. These payments may have certain tax consequences; you should consult your tax advisor.

If you do nothing, you will release any claims you may have against Cerner or the Released Defendant Parties concerning the conduct Plaintiffs allege in their complaint. You may also receive a payment as described in your Notice

No. If the Court approves the Settlement, you will be bound by it and will receive whatever benefits you are entitled to under its terms. You cannot exclude yourself from the Settlement, but you may notify the Court of your objection to the Settlement. If the Court approves the Settlement, it will do so under Federal Rule of Civil Procedure 23(b)(1), which does not permit Class Members to opt out of the Class.

No. If the Court approves the Settlement, you will have given up any right to sue Cerner and the Released Defendant Parties for the claims being resolved by this Settlement.

You can object to the Settlement if you don’t like any part of it. If you object, you must give the reasons why you think the Court should not approve the Settlement. The Court will consider your views. Your objection to the Settlement must be received no later than July 1, 2021 and must be sent to the Court and the attorneys for the Parties.

A Fairness Hearing has been set for July 22, 2021 at 9:00 a.m., before The Honorable Brian C. Wimes at the Charles Evans Whittaker United States Courthouse, 400 E. 9th Street, Kansas City, MO 64106 in Courtroom 7652. At the hearing, the Court will hear any comments, objections, and arguments concerning the fairness of the proposed Settlement, including the amount requested by Class Counsel for attorneys’ fees and expenses and the incentive award to Plaintiffs as the Class Representatives. You do not need to attend this hearing. You also do not need to attend to have an objection considered by the Court.

Note: The date and time of the Fairness Hearing are subject to change by Court Order. The Fairness Hearing may also take place via video or telephonically. But any changes will be posted on this website.