Schlichter Bogard Obtains Record $38.7 Million Jury Verdict for Pentegra Retirement Plan Participants

As reported by Bloomberg and numerous other media outlets, Schlichter Bogard has obtained a landmark $38.7 million jury verdict on behalf Pentegra Services Inc. retirement plan participants. The verdict is believed to be the largest jury verdict ever in an excessive-fee case arising under the Employee Retirement Income Security Act (ERISA).

The unanimous verdict, delivered on April 23, followed a one-week trial before U.S. District Judge Phillip M. Halpern. The plaintiffs represented by Schlichter Bogard alleged that Pentegra breached its fiduciary duty 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.

The lawsuit was originally filed by Schlichter Bogard in September 2020. The certified class encompasses nearly 27,000 people who participated in Pentegra’s retirement plan.

“We believe this to be the highest jury verdict ever in an excessive fee case and are very pleased with the jury’s understanding of the serious duty that Pentegra and its Board owed to employees and retirees and that justice was served,” said Troy Doles, who along with Nathan Stump, led the trial team. “Employees deserve the right to build their retirement assets for a secure retirement without Pentegra acting for its self-interest against them.”

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