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Citigroup Self-Dealing Settlement

A $6.9 million settlement has been approved after being as a result of “arm’s-length” negotiations between parties. Plaintiffs in the case had alleged that Citigroup 401(k) Plan fiduciaries violated ERISA by selecting investments and plan services offered and managed by Citigroup subsidiaries or affiliates, therefore generating “substantial revenue” for Citigroup at the expense of 401(k) Plan participants. Settlement was reached without any admission of wrongdoing by Citigroup. The $6.9 million includes $2.3 million to the plaintiffs’ attorneys, and $15,000 to each of the two class representatives and $374,000 to case-related expenses, leaving approximately $4.2 million for distribution to approximately 300,000 members of the class (retirees and former employees).

www.asppa.org; January 10, 2019.