U.S. District Court Enters Final Approval of $13 Million Settlement Obtained by Schlichter Bogard on Behalf of University of Pennsylvania Retirement Plan Participants
Schlichter Bogard & Denton is pleased to announce that the U.S. District Court for the Eastern District of Pennsylvania on December 14, 2021 entered final approval of a settlement obtained on behalf of University of Pennsylvania employees and retirees. The settlement terms include the creation of a $13 million settlement fund for retirement plan participants as well as substantial non-monetary relief, including changes to the retirement plans at issue.
The lawsuit, filed in August 2016, alleged breaches of fiduciary duties under ERISA by, among other things, charging retirement plan participants excessive fees and retaining underperforming investments. Additionally, the lawsuit alleged that Penn permitted its recordkeeper to use participant data to cross-sell financial products.
As part of the settlement, the University has agreed to conduct a request for proposal for bids on recordkeeping fees, set a fixed fee for administrative services, and prohibit recordkeepers from cross-selling to retirement plan participants. Schlichter Bogard & Denton will monitor compliance with these terms.
We are proud to be pioneers in retirement plan litigation. Visit our website to learn more about other groundbreaking cases handled by Schlichter Bogard & Denton. For additional information about Schlichter Bogard & Denton’s retirement practice, please contact us at 800-873-5297 or via email at contact@uselaws.com.
