MIT Settlement Receives Final Approval, Marks Largest Excessive Fee Recovery on Behalf of University Retirement Plan Participants
On June 5, a federal judge entered a final order approving an $18.1 million settlement of an ERISA class action lawsuit brought by Schlichter Bogard & Denton on behalf of MIT workers and retirees.
“The product of extensive arm’s-length negotiations preceded by hard-fought litigation,” the MIT settlement marks the largest excessive fee recovery on behalf of university retirement plan participants.
Plaintiffs alleged, among other things, that they were charged excessive recordkeeping fees and incurred significant losses due to fiduciaries’ failure to strike underperforming funds from the plan.
In addition to its financial terms, the settlement also includes substantial non-monetary relief that aims to protect participants’ future investments, “including a requirement that defendants conduct a request for proposal for recordkeeping services and provide annual training to plan fiduciaries on prudent practices under ERISA.”
Additional coverage can be found here and here. For more information about Schlichter Bogard & Denton’s Financial Products & Services practice, please call us at 800-873-5297 or send us a message at sbd@uselaws.com.
