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Northrop Grumman Settles ERISA Suit

A $16.75 million settlement amount has been reached in this case in which plaintiffs (100,000 participants between 2000-2009) alleged that Northrop fiduciaries violated duties to employees in the company’s two 401(k) plans by “improperly causing” those plans to pay Northrop for administrative services. These types of claims are more commonly filed against plans serviced by investment providers or recordkeepers, but can be filed against non-investment “sponsors” of such plans.

www.planadviser.com; July 13, 2017.