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Litigation Developments

A review of the litigation environment and ongoing class action lawsuit and settlement news occurring in the retirement plan industry.

Duke Excessive Fee Settlement

A settlement of $10.65 million has been reached in this excessive fee case. Settlement includes attorneys’ fees of $3.55 million along with other costs of $825,000 with the remaining monies to benefit plan investors. Non-monetary settlement requirements include providing participants the opportunity to transfer money from certain frozen annuity accounts, the hiring of an independent […]

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Waddell & Reed Self-Dealing Settlement

In this class action lawsuit, filed in June 2017, 4,487 plaintiffs (current and former participants) claimed that Waddell & Reed Financial Inc. 401(k) and Thrift Plan fiduciaries violated fiduciary duties by offering proprietary investments without the consideration of better performing, less expensive non-proprietary options. Despite Waddell & Reed’s admission of no wrongdoing, a $4.875 million […]

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AonHewitt Lawsuit Dismissal

This case, alleging that the Caterpillar Inc. 401(k) Plan recordkeeper, AonHewitt, violated fiduciary duties when financial advice services were subcontracted to Financial Engines, has been dismissed with prejudice. As such, another complaint cannot be filed, and each party must pay their own attorneys’ fees and cost. Plaintiffs in this case alleged that AonHewitt “caused participants […]

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