Federal Court Approves $17 Million Settlement in Philips North America 401(k) Excessive Fee Suit

Schlichter Bogard & Denton has secured a $17 million settlement with Philips North America on behalf of participants in the company’s 401(k) retirement plan, which has more than $3 billion.

The settlement, which also included substantial nonmonetary provisions, was approved by the Honorable Nancy J. Rosenstengel, who presided over a final fairness hearing on October 12, 2018. Judge Rosenstengel had previously issued a preliminary approval of the settlement on June 12, 2018.

Regarding the settlement, Schlichter Bogard & Denton’s founding and managing partner, Jerome Schlichter, said, “[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, retain the Vanguard Prime Money Market Fund as the sole capital preservation option, and keep the underperforming Principal Diversified Real Asset Fund.Articles discussing the settlement can be found here and 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.