U.S. District Court Preliminarily Approves $17 Million Proposed Settlement in 401(k) Suit Brought on Behalf of Philips North America Retirement Plan Participants

A U.S. District Court judge has preliminarily approved a $17 million proposed settlement brought by Schlichter Bogard & Denton on behalf of participants in Philips North America’s 401(k) retirement plan.

The proposed settlement, which includes significant nonmonetary provisions, still has to undergo final approval at a hearing scheduled for October 12, 2018.

Regarding the proposed settlement, Schlichter Bogard & Denton’s founding and managing partner, Jerome Schlichter, who represents the plaintiffs, said that “[i]n addition to the compensation, the participants will be getting an improved plan with significant protections for them to build their retirement assets in the future.

Plaintiffs alleged that Philips caused its 401(k) plan to pay excessive investment management and administration fees and retained certain funds that either underperformed or had insufficient yields.  Media coverage of the litigation can be found here.

For additional information about Schlichter Bogard & Denton’s ERISA and Financial Abuse practice, please contact Schlichter Bogard & Denton at 1-800-873-5297 or sbd@uselaws.com.