U.S. District Court Enters Final Approval of $22 Million Settlement Obtained by Schlichter Bogard & Denton on Behalf of Takeda Pharmaceuticals Retirement Plan Participants
As reported by Bloomberg Law, the U.S. District Court for the District of Massachusetts on March 24, 2023 entered final approval of a settlement obtained by Schlichter Bogard & Denton on behalf of Takeda Pharmaceuticals employees and retirees.
The lawsuit, filed by Schlichter Bogard & Denton on January 19, 2021, alleged that Takeda breached its fiduciary duties under ERISA by retaining a suite of unproven collective investment trust target date funds as options in its 401(k) Plan, known as the Northern Trust Focus Funds. The case alleges that the Focus Funds underperformed relative to comparable target date funds that were available to the Plan.
The settlement’s terms outline the creation of a $22 million settlement fund for retirement 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.
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