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Case 3:06-cv-00703-DRH-CJP Document 2 Filed 09/11/2006 Page 12 of 5249. Class certification is also appropriate under Rule 23(b) and each subpart in that:A. Pursuant to Rule 23(b)(1)(A), in the absence of certification, there is a riskof inconsistent adjudications with respect to individual class members;B. Pursuant to Rule 23(b)(2), as set forth above, the Defendants have actedon grounds generally applicable to the Class as a whole; andC. Pursuant to Rule 23(b)(3), as set forth above, common issues of law andfact predominate over any purely individual issues and thus a class action issuperior to any other method for adjudicating these claims.FACTS APPLICABLE TO ALL COUNTSThe Plans50. As part of their compensation and benefits, IPC offers certain of its employees theopportunity to participate in the Plans. Both Plans are “defined contribution plan[s],” as definedin ERISA § 3(34), 29 U.S.C. § 1002(34), and contain or are part of “eligible individual accountplan[s]” under ERISA § 407(d)(3)(A), 29 U.S.C. §1107(d)(3)(A). They are tax-qualified plansof the type popularly known as a “401(k) plan.”51. IPC benefits by providing the Plans to eligible employees in that the opportunityto participate enhances IPC’s ability to recruit and retain qualified personnel, fosters employeeloyalty and goodwill, and entitles IPC to tax advantages under the Internal Revenue Code.52. The Plans are essentially identical but for minor technical differences not relevantto the facts and issues set forth in this Complaint.53. According to the Plans’ financial statements filed with the Department of Labor(which are virtually identical):General – The Plan is a defined contribution plan providing retirement benefits tothe salaried domestic employees and certain hourly domestic employees of12
Case 3:06-cv-00703-DRH-CJP Document 2 Filed 09/11/2006 Page 13 of 52International Paper Company and its subsidiaries (the “Company”) who work inthe United States or who are United States citizens or residents working outsidethe United States. The Plan is subject to the provisions of the EmployeeRetirement Income Security Act of 1974, as amended (“ERISA”).The assets of the Plan are held by State Street Bank and Trust Company (the“Trustee”) in the International Paper Company Defined Contribution PlansMaster Trust (the “Master Trust”), a master trust established by the Company andadministered by the Trustee.J.P. Morgan Retirement Plan Services, previously J.P. Morgan/American Century(the “Recordkeeper”) is the recordkeeper for the Planof Labor:of Labor:54. According to the Plans’ financial statements filed with the Department of Labor:Eligibility to Participate – An employee is generally eligible to participate in thePlan upon date of hire if the employee is a salaried employee, or a non-bargainedhourly employee at a designated location, and is employed on a non-temporarybasis. Participation in the Plan is voluntary. New employees are automaticallyenrolled in the Plan 45 days from the date they become eligible to participate,unless they otherwise decline participation or make alternative contribution and/orinvestment elections.55. According to the Plan’s financial statements filed with the Department of Labor:Participant Contributions – Participant contributions may be made on either abefore-tax or after-tax basis, or in any combination and are subject to certainInternal Revenue Code (the “Code”) limitations. The maximum rate ofparticipant contributions is 85% of annual compensation as defined by the Plan.56. According to the Salaried Plan’s financial statements filed with the DepartmentCompany Matching Contributions – The Company matches all participantcontributions at 70% of the first 4% of participant contributions and 50% of thenext 4% of participant contributions.57. According to the Hourly Plan’s financial statements filed with the Department13
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