Settlement Reached in Excessive Fee Suit
A $1.8 million deal has been struck between parties in a lawsuit over excessive fees in a 401(k) plan.
The lawsuit, which attempted to expand to include forfeitures, was previously dismissed by Judge Araceli Martínez-Olguín in August 2024 due to lack of specific facts to support the claims.
The lawsuit was a "meandering" attempt to seek millions of dollars in damages because the plan didn’t offer the plaintiffs "preferred investments" - Ferguson
The plaintiffs were given the option to amend their suit, which they did, adding new claims regarding forfeiture reallocation. However, Judge Martínez-Olguín described these new claims as "a new legal theory in violation of the Court's Order."
The settlement brings an end to the lawsuit, with the parties agreeing to the $1.8 million deal.
Author's Summary
Parties in a 401(k) excessive fee suit reach $1.8 million settlement.