Schlichter Bogard Denton Obtains $16.75 Million Settlement In Longstanding 401(k) Excessive Fee Case Against Northrop Grumman
Schlichter Bogard & Denton has reached a $16.75 million settlement with Northrop Grumman on behalf of participants in Northrop Grumman’s 401(k) plan. Among other things, the complaint alleged that Northrop Grumman violated its duties to plan participants by improperly causing participants to pay excessive administrative fees.
The case was originally filed by Schlichter Bogard & Denton in 2006 and, after over a decade of litigation, went to trial on March 14, 2017. After three days of trial the parties agreed to a settlement, which covers conduct occurring between September 28, 2000 and May 11, 2009. The settlement does not cover claims raised in Marshall v. Northrop Grumman Corp., a second case filed by Schlichter Bogard & Denton against Northrop Grumman that includes similar allegations but covers a later time period. Articles discussing the settlement can be found here, here and here.
Schlichter Bogard & Denton managing partner Jerry Schlichter was quoted regarding the case as follows: “After 10 years of litigation, we are pleased that the employees and retirees of Northrop Grumman will now benefit from this settlement. We look forward to continuing our work on behalf of these employees and retirees, as we seek to obtain further compensation for losses sustained from 2010 to the time of the next trial.”