A preliminary settlement agreement in one of the original and longest running examples of 401(k) excessive fee litigation has been reached and agreed upon by both plaintiffs and defendants. Plaintiffs alleged that Boeing violated ERISA by allowing a variety of excessive fees to be levied to plan participants, engaging in self-serving conflicts of interest, and allowing imprudent funds as offerings within the plan. Settlement terms were submitted to the court, but not made available.
The case resulted in a series of important rulings, namely, confirmation of class action certification in cases in which a retirement plan “as a whole” is injured at the same time as an individual employee (when the employer/entity responsible for investing a plan’s assets charges fees that are too high or has been reckless in the selection of investment options available to participants).
www.plansponsor.com; August 27, 2015.