Schlichter Bogard Receives Final Approval of $48.5 Million Settlement on Behalf of Pentegra 401(k) Plan Participants

As reported by Bloomberg Law and various media outlets, the U.S. District Court for the Southern District of New York on December 2, 2025 entered final approval of a $48.5 million settlement obtained by Schlichter Bogard on behalf of Pentegra employees and retirees. The settlement approval follows a one-week trial resulting in a landmark unanimous jury verdict of $38.7 million for breach of fiduciary duty.

The lawsuit alleged that Pentegra Services Inc. and its Board of Directors violated their fiduciary obligations to plan participants through a conflicted structure in which members of its Board of Directors served on the 401(k) plan’s fiduciary committee, with a duty to make sure fees were reasonable, while at the same time working to maximize profits for the company, and against the interest of employees and retirees.

Jerry Schlichter, founding partner of Schlichter Bogard, said “This will fully restore the 401(k) plan participants’ losses, which the jury found were a result of Pentegra’s highly improper use of plan assets for its own self-interest, instead of the interests of the employees and retirees. The settlement will also provide valuable reform of the 401(k) plan to protect them for many years in the future.“

For additional information about Schlichter Bogard’s retirement practice, please contact us at 800-USE-LAWS (873-5297) or via email at contact@uselaws.com.