Schlichter Bogard & Denton Reaches Preliminary $22 Million Settlement on Behalf of Takeda Pharmaceuticals Employees
As reported by Law 360, Schlichter Bogard & Denton has reached a preliminary agreement to settle an ERISA class action lawsuit brought on behalf of participants in Takeda Pharmaceuticals’ 401(k) retirement plan (the “Plan”).
The lawsuit, filed by Schlichter Bogard & Denton on January 19, 2021, alleges that Takeda breached its fiduciary duties under ERISA by retaining a suite of unproven collective investment trust target date funds as options in the Plan, known as the Northern Trust Focus Funds (“Focus Funds”). The case alleges that the Focus Funds underperformed relative to comparable target date funds that were available to the Plan.
The preliminary settlement’s terms outline the creation of a $22 million settlement fund for Plan participants as well as substantial non-monetary relief, including requirements that Takeda provide annual training to Plan fiduciaries on ERISA, conduct a request for recordkeeping and administrative fee proposals, and take other measures.