Contact: Steve Lyons (608) 220-7478
Investment Firm’s Actions Cost Those Losing Their Jobs Over $3M
MADISON, WI. Wisconsin-based NeuGen LLC announced today that it has filed a lawsuit against east coast investment firm, MassMutual. The lawsuit is an effort to help nearly 300 former NeuGen employees, their families and retirees recoup money from the billion-dollar investment firm MassMutual.
In the Fall of 2022, NeuGen, part of a Wisconsin-based group health insurance organization, informed MassMutual that it was downsizing its workforce. In response, MassMutual abruptly terminated NeuGen from participating in its fund, forcing NeuGen participants out of their investment at a depressed market value. Two hundred ninety-five employees and retirees were invested in the fund. As a result of MassMutual’s actions, NeuGen participants in the fund saw their retirement investment in the fund drop 18% in one day. All told, nearly 300 employees lost roughly $3 million.
Laura Calay, a single mother of two and retiree stated, “It is simply the worst thing you can do to someone. We are told that we are going to lose our jobs, and then MassMutual, the company we trusted with our retirement, cuts us off at the knees. My co-workers and I lost nearly 20% of our retirement in a single day. If this isn’t illegal – it is surely immoral.”
“We trusted our asset managers, MassMutual, to help achieve financial independence so we could retire and support our families. MassMutual kicked 300 people when we were down and needed them the most. I suffered, my family suffered, and my future financial independence suffered. Decency has been replaced by corporate greed,” said Beth Germain, a former employee of more than 20 years and a mother of a five year old daughter.
Vaughn Vance, President and CEO of NeuGen LLC stated, “Our filing of this lawsuit is about what is right and what is wrong. MassMutual determined that it would immediately pay the ‘market value’ and leave participants a fraction of what they believed they had in their accounts. MassMutual ignored better options for our participants that would have preserved the value of their retirement accounts. This type of business decision is just wrong.”
Vance went on to say, “NeuGen is committed to making participants made whole. We worked closely with our employees when we downsized because we care about them and their future. The action of MassMutual is unconscionable. We believe that our retirees and the hardworking men and women who provided for their families will prevail over the interests of a company whose CEO’s compensation is more than $13 million a year.”
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About NeuGen
Founded in November 2018, NeuGen is a Shared Services organization based out of Madison, Wisconsin. It was created by the not-for-profit WEA Trust, which was created by the Wisconsin Education Association Council (WEAC) to provide insurance and retirement benefits for Wisconsin public school employees. For more information about NeuGen go to www.weatrust.org/neugen-lawsuit.
