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Northrop Grumman Settlement

The original lawsuit filed many claims of ERISA fiduciary breaches against the company, among which included allowing the recordkeeper to receive fees from the plan’s managed accounts service provider, Financial Engines, paying plan assets to the company for unnecessary “administrative services Northrop provided to the Plan”, and causing the plan to pay unreasonable recordkeeping fees and “mismanaging the Plan’s emerging markets fund”. Most of the claims were dismissed with the Court finding that Northrop was not a fiduciary with regard to the alleged acts, with the exception of the failure to monitor fiduciaries count. Although Northrop denies all claims of liability, Northrop has agreed to pay a gross settlement almost $12.4 million.

www.planadviser.com; January 14, 2020.