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Boeing Settlement Terms Disclosed

Boeing has agreed to pay $57 million to settle the case brought against it in September 2006, in which Boeing plan participants alleged excessive fees were incurred by the plan and plan participants, through a combination of undisclosed hard dollar payments and hidden revenue sharing transfers. Additional claims included failure to offer less expensive investments given the asset size of the Boeing Plan, failure to offer less expensive and better performing passive funds, and failure to capture millions in income from securities lending rebates, foreign currency exchange earnings, and sweep fees to benefit participants. Boeing has since obtained competitive bids, replaced mutual funds with lower priced separate accounts, and agreed to retain an independent investment consultant to “review or not offer a technology sector” option in the Plan.; November 5, 2015.; November 6, 2015.