United States District Court for the Eastern District of Tennessee
Notice of Proposed Class Action Settlement
A federal court authorized this notice. This is not a solicitation from a lawyer.
You are not being sued. Please do not contact the Court.
A settlement has been proposed to end a class action lawsuit against Branch Banking and Trust Company (“BB&T”), known as Sevier County Schools Federal Credit Union, et al. v. Branch Banking and Trust Company, Case No. 3:19-cv-00138-TRM-DCP (E.D. Tenn.). The lawsuit claims that BB&T reduced the interest rate on certain accounts that were allegedly guaranteed an interest rate never to fall below 6.5%. BB&T denies that it did anything wrong.
The parties in this lawsuit have agreed to a settlement that will resolve this lawsuit on a class action basis. As described further below, if the settlement is approved by the Court, BB&T will pay $6.3 million to the Settlement Class. If the Settlement is approved and becomes final, you will be issued a payment and your rights will be affected if you are a member of the Settlement Class as set forth below and you do not exclude yourself from the Settlement Class.
Should you wish to receive a payment as a result of the settlement, you do NOT need to do anything.
Payments will be made by check mailed directly to all Settlement Class Members who do not exclude themselves from the settlement.
Please read this Notice of Proposed Class Action Settlement carefully. Your legal rights will be affected, and you have a choice to make now.
Please do not contact BB&T/Truist or the Court regarding your legal rights. They will not be able to answer your questions.
Your Legal Rights and Options in this Lawsuit
Option 1:
Do Nothing
If you do nothing and the settlement becomes final, you will receive a payment by mail and you will be barred from making any further claim against BB&T relating to the accounts in question.
No Deadline
Option 2:
Exclude Yourself From the Settlement
If you exclude yourself from the Settlement Class (also called “opting out”), you will give up your right to receive a settlement payment, but you will not release any claims and will retain any rights you may have to bring your own claim or lawsuit about the issues in this lawsuit. See Question 10 for more information.
Deadline: May 16, 2024
Option 3:
Object or Comment
If you do not exclude yourself from the Settlement Class, you may object to, or comment on, the settlement and/or Class Counsel’s request for attorneys’ fees, expenses, and service or incentive awards to the individuals or entities who brought this lawsuit or pursued these claims on behalf of the Settlement class. See Question 11 for more information.
Deadline: May 16, 2024
What this Notice Contains
Basic Information
What is this lawsuit about?
Why is this class action?
Information about the Settlement
Who is in the Settlement Class?
What are the terms of the proposed settlement?
What are the benefits of the proposed settlement?
How will settlement payments be determined and sent?
Your Rights and Options
What are my options?
How do I stay in the Settlement Class?
What happens if I do nothing?
How do I exclude myself from the Settlement Class?
How do I object or comment?
What claims will be released by this Settlement?
The Lawyers Representing You
Do I have a lawyer in this class action?
How will the lawyers be paid?
Should I hire my own lawyer for this case?
The Court’s Final Approval Hearing
When and where will the Court decide whether to approve the settlement?
Do I have to come to the hearing?
May I speak at the hearing?
Getting More Information
Where can I get more information?
Basic information about the class action
What is this lawsuit about?
The lawsuit concerns certain Money Rate Savings Accounts at Branch Banking and Trust Company (BB&T), now known as Truist, that were originally opened as Money Market Investment Accounts with First National Bank of Gatlinburg in approximately 1989 through 1992 (the “Subject Accounts”). The lawsuit alleges that BB&T breached a contract with the account holders when it failed to pay an alleged guaranteed 6.5% interest on the subject accounts.
Several account holders filed a class action lawsuit against BB&T about these issues. The complaint in this case is available at www.BBTInterestRateSettlement.com. BB&T denies that it did anything wrong.
The Plaintiffs (the account holders who filed the lawsuit against the bank) and BB&T have now agreed to a settlement to resolve this lawsuit and the claims alleged in it, as described below. The Court has not decided whether Plaintiffs or BB&T are correct. By agreeing to the settlement, neither BB&T nor Plaintiffs make any admissions regarding the merits of the allegations, claims, or defenses in this case.
The United States District Court for the Eastern District of Tennessee is overseeing this class action lawsuit. The lawsuit, known as Sevier County Schools Federal Credit Union, et al. v. Branch Banking & Trust Co., No.: 3:19-cv-00138 (E.D. Tenn.), claims that BB&T breached a contract to pay an alleged guaranteed 6.5% interest on certain Money Rate Savings Accounts initially opened with First National Bank of Gatlinburg as Money Market Investment Accounts between approximately 1989 and 1992.
2. Why is this a class action?
In a class action, one or more people sue on behalf of themselves and other people with similar claims. All of these people together make up the Settlement Class and are Settlement Class Members. One court resolves the issues for all Settlement Class Members, except for those who exclude themselves from the Settlement Class.
Information about the Settlement
3. Who is in the Settlement Class?
If you received a notice of this settlement in the mail, BB&T’s records indicate that you are in the Settlement Class. People in the Settlement Class are called “Settlement Class Members.”
The final Settlement Class will consist of all Persons having a Money Rate Savings Account (which was initially opened as a Money Market Investment Account at First National Bank of Gatlinburg) at BB&T on the Benchmark Date of February 1, 2018, except for those individuals who submit timely and valid requests for exclusion by the deadline set by the Court. (See Question 10).
4. What are the terms of the proposed settlement?
The complete terms of the proposed settlement are set forth in the Settlement Agreement, which is available at www.BBTInterestRateSettlement.com. This notice provides only a summary of the terms of the settlement. The settlement benefits and obligations are summarized below.
5. What are the benefits of the proposed settlement?
If the settlement is approved and becomes final, BB&T will pay six million, three-hundred thousand dollars and zero cents ($6,300,000.00) into a settlement fund. This money will be used to:
(1) make settlement payments to Settlement Class Members, as described at Question 6;
(2) pay the costs of distributing notice and issuing checks to Settlement Class Members and other costs of administering the settlement; and
(3) pay court-awarded attorneys’ fees and litigation expenses of the attorneys appointed by the Court to represent the Class (“Class Counsel”) and any incentive award(s) granted to the Class Representatives.
You do NOT need to take any action to receive a settlement payment.
6. How will the settlement payments be determined and sent?
If the settlement is approved and becomes final, Settlement Class Members who do not exclude themselves from the Settlement Class will be issued a settlement payment. Settlement Class Members’ payment amounts will be based on the amount of money each had on deposit in the subject accounts as of February 1, 2018, the Benchmark Date. Specifically, each Settlement Class Member will get a share of the settlement funds proportionate to the amount each had on deposit in the subject account as of the Benchmark Date, compared to the aggregate amount of all funds on deposit in the subject accounts as of that date.
Class Counsel estimates that each account holder would receive approximately 15-20% of his/her/its account balance on the Benchmark Date of February 1, 2018. For example, the holder of an account with a balance of $100,000 on the Benchmark Date would receive a settlement payment of approximately $15,000-$20,000. Note: this is just an estimate; the actual amount may be different due to a number of factors including the cost of administration, the number of account holders who choose to opt out, and the amount that the Court actually awards as attorney fees, expenses, and/or incentive awards.
The settlement payment amounts to be issued to each Settlement Class Member will be calculated based on BB&T’s records.
You do NOT need to take any action to receive a settlement payment. If the settlement is approved and becomes final, settlement payments will be sent by check.
Your Rights and Options
7. What are my options?
Option 1: Do nothing. If you do nothing and the settlement becomes final, you will receive a payment by mail and you will be barred from making any further claim against BB&T relating to the accounts in question.
Option 2: Exclude yourself from the Settlement. You may exclude yourself from the Settlement Class (sometimes referred to as “opting out”) by following the steps described in Question 10. If you exclude yourself, you will give up your right to receive a settlement payment and other settlement benefits but will retain any right you may have to sue BB&T about the issues in this lawsuit.
Option 3: Object or comment. If you do not exclude yourself from the Settlement Class, you may object to, or comment on, the settlement and/or Class Counsel’s request for attorneys’ fees, expenses, and service or incentive awards to the individuals or entities who brought this lawsuit or pursued these claims on behalf of the Settlement class. See Question 11 for more information.
8. How do I stay in the Settlement Class?
If you are within the Settlement Class and you do not exclude yourself, you do not need to do anything to be eligible to receive a payment from the class action settlement. If the Court approves the settlement and the settlement becomes final, you will be issued a settlement payment that will be mailed directly to you. If the settlement is approved and does become final, you will be legally bound by the settlement agreement and all of the orders that the Court issues and judgments the Court makes in this class action.
9.What happens if I do nothing?
If you are in the Settlement Class and you do nothing, and the settlement becomes final, you will be issued a settlement payment, and you will give up your right to bring your own claims about the issues in this lawsuit.
10. How do I exclude myself from the Settlement Class?
To exclude yourself from the Settlement Class, you must mail a written request for exclusion to:
The Trial & Litigation Company
Attn: Settlement Administrator
PO Box 2601 Knoxville, TN 37901
To be effective, your request for exclusion must be postmarked no later than May 16, 2024, and must:
Identify the case name of the Action: Sevier County Schools Federal Credit Union, et al. v. Branch Banking and Trust Company, Case No. 3:19-cv-00138-TRM-DCP (E.D. Tenn.);
Identify the name, mailing address, and telephone number of the Settlement Class Member seeking exclusion;
Be personally signed and dated by the Settlement Class Member seeking exclusion or by an officer or managing agent of the entity seeking exclusion;
Include a statement clearly indicating the Settlement Class Member’s intent to be excluded from the Settlement; and
Request exclusion only for that one Settlement Class Member whose personal signature appears on the request or, if the Settlement Class Member seeking exclusion is an entity, then only for that one Settlement Class Member whose personal signature of an officer of managing agent of the entity appears on the request. Opt-out requests seeking exclusion on behalf of more than one Settlement Class Member shall be deemed invalid.
11. How do I object or comment?
If you are a Settlement Class Member, and have not excluded yourself from the Settlement Class, you can comment on or object to the settlement, Class Counsel’s request for attorneys’ fees and litigation expenses, and/or the request or incentive awards for the Class Representatives. To object or comment, you must file a written objection/comment that includes the following:
the name and case number of this lawsuit: Sevier County Schools Federal Credit Union, et al. v. Branch Banking and Trust Company, Case No. 3:19-cv-00138-TRM-DCP (E.D. Tenn.);
The name, address, telephone number of the objecting Settlement Class Member and, if represented by counsel, of his/her counsel;
A statement of whether the objection applies only to the objector, to a specific subset of the class, or to the entire class;
A statement of the specific grounds for the objection;
A statement of whether the objecting Settlement Class Member intends to appear at the Final Approval Hearing, and if so, whether personally or through counsel. If you intend to appear through counsel, your objection must also identify all counsel representing you who will appear at the Final Approval Hearing (who must enter a written Notice of Appearance of Counsel with the Clerk of the Court)
A list of all other class action settlements to which you or your attorney has previously filed an objection;
A list of any persons who will be called to testify at the Final Approval Hearing in support of the objection; and
Your signature (your attorney’s signature is not sufficient).
To be considered by the Court, your comment or objection must be filed or mailed to the Clerk of Court, with copies to BB&T counsel and Class Counsel, filed/postmarked no later than May 16, 2024, at the following addresses:
The Court
Clerk of the Court
United States District Court for the Eastern District of Tennessee at Knoxville
800 Market Street, Suite 130
Knoxville, TN 37902
BB&T’s Counsel
Zachary A. McEntyre
Danielle Chattin
KING & SPALDING, LLP
1180 Peachtree Street, NE, Suite 1600
Atlanta, GA 30309
Telephone: (404) 572-4600
zmcentyre@kslaw.com
dchattin@kslaw.com
Class Counsel
Gregory Brown
W. Scott Hickerson
G. Alan Rawls
LOWE YEAGER & BROWN, PLLC
920 Volunteer Landing, Suite 200
Knoxville, TN 37915
Telephone: (865) 521-6527
gb@lyblaw.net
wsh@lyblaw.net
gar@lyblaw.net
Donald K. Vowell
THE VOWELL LAW FIRM
6718 Albunda Drive
Knoxville, TN 37919
Telephone: (865) 292-0000
don@vowell-law.com
You have the right to consult with your own attorney, at your own expense, before deciding how best to proceed.
12. What claims will be released by this Settlement?
If you are in the Settlement Class and do not exclude yourself from the Settlement, and the Settlement is approved and becomes final, the Settlement will be legally binding on you. In exchange for participating in the Settlement and receiving payment, you will have been deemed to have released all claims against BB&T and its affiliates about the issues in this Action regarding BB&T’s alleged failure to continue to pay 6.5% interest on the Subject Accounts . You also covenant and agree that you will not take any step whatsoever to commence, institute, continue, pursue, maintain, or prosecute any claims about the issues in this Action against BB&T and its affiliates. The Settlement Agreement, a copy of which is available at www.BBTInterestRateSettlement.com, describes the claims you are releasing (giving up) by not excluding yourself from the Settlement Class (called “Released Claims”).
The Lawyers Representing You
13. Do I have a lawyer in this class action?
Yes. The Court has appointed the following attorneys and law firms to represent the Settlement Class Members. Together, these lawyers are called “Class Counsel”:
Gregory Brown
W. Scott Hickerson
G. Alan Rawls
LOWE YEAGER & BROWN, PLLC
920 Volunteer Landing, Suite 200
Knoxville, TN 37915
Telephone: (865) 521-6527
gb@lyblaw.net
wsh@lyblaw.net
gar@lyblaw.net
Donald K. Vowell
THE VOWELL LAW FIRM
6718 Albunda Drive
Knoxville, TN 37919
Telephone: (865) 292-0000
don@vowell-law.com
You do not have to pay Class Counsel for their time or expenses incurred in this case out of your pocket. Instead, Class Counsel will petition the Court for an award of their fees and expenses; any amount awarded will be paid from the Settlement Fund.
The Court has also appointed Sevier County Schools Federal Credit Union; Timothy Munson, authorized representative of Suzanne Munson; Geoffrey Wolpert; Charles McGaha; Charles McGaha, authorized representative of Charlene McGaha; Robin Nichols; Gregory Nichols; Gregory Nichols as personal representative of the Estate of Rex Nichols; Sarah Morrison; April Galyon as personal representative of the Estate of Edith LaFollette; John Plummer as personal representative of the Estate of Samuel Lyle.
14. How will the lawyers be paid?
Class Counsel (see Question 13) will file a motion on or before April 30, 2024, asking the Court to award them attorneys’ fees up to one-third of the $6.3 million settlement fund to reimburse them the litigation expenses incurred in pursuing the claims against BB&T. The attorneys’ fees and expenses awarded by the Court will be the only payment to Class Counsel for their efforts in achieving the settlement and for their risk in undertaking this representation on a wholly contingent basis. In addition, Class Counsel will ask the Court on or before April 30, 2024, to award the Class Representatives representing the Settlement Class an incentive award of up to $10,000 each to compensate them for their efforts and commitment on behalf of the Settlement Class in pursuit of the claims. Notwithstanding Class Counsel’s application for attorneys’ fees, expenses, and incentive award(s), it is the Court that will determine the amount of attorneys’ fees, expenses, and incentive award(s), if any, that will be distributed.
15. Should I hire my own lawyer for this case?
You do not need to hire your own lawyer because Class Counsel represents you and the other members of the Settlement Class already. However, you have the right to hire your own lawyer. If you want your own lawyer separate from Class Counsel, you will have to pay that lawyer.
The Court’s Final Approval Hearing
16. When and where will the Court decide whether to approve the settlement?
The Court will hold a Final Approval Hearing on June 17, 2024, at 1:00 p.m. (Eastern time), in Courtroom 3 at the U.S. Courthouse, 900 Georgia Avenue, Chattanooga, Tennessee. The hearing may be moved to a different date or time, or the Court may order that the hearing be held telephonically or by videoconference, without additional notice.
At the Final Approval Hearing, the Court will consider whether the Settlement is fair, reasonable and adequate. The Court will also consider Class Counsel’s application for attorneys’ fees, expenses, and incentive award(s). If there are objections, the Court will consider them. After the hearing, the Court will decide whether to approve the Settlement. We do not know how long these decisions will take.
17. Do I have to come to the hearing?
No, you do not. Class Counsel will answer questions the Court may have. But, you are welcome to come at your own expense. If you submit an objection, you do not have to come to the Court to talk about it. So long as you submitted your written objection on time, the Court will consider it. You may also pay your own lawyer to attend, but it is not necessary.
18. May I speak at the hearing?
Only if you have previously timely filed an objection to the Settlement, as detailed above, and if you are a Settlement Class Member and have not opted out of the Settlement, you may ask the Court for permission to speak at the Final Approval Hearing. You cannot speak at the hearing if you exclude yourself from the Settlement Class.
Getting more information
19. Can I get more information?
You may obtain more information by visiting www.BBTInterestRateSettlement.com or by contacting Class Counsel.
PLEASE DO NOT CONTACT THE COURT, THE JUDGE, OR BB&T/TRUIST WITH QUESTIONS ABOUT THE SETTLEMENT OR FOR MORE INFORMATION