‘Unique and Unparalleled Foresight:’ Schlichter Bogard Obtains Final Approval of $14 Million Settlement with Johns Hopkins University, Credited with Pioneering Groundbreaking Retirement Plan Litigation
In August 2016, Schlichter Bogard & Denton filed suit against Johns Hopkins University on behalf of thousands of participants in its retirement plan, alleging that the university allowed employees to invest in underperforming, high-cost funds and permitted participants to be charged excessive administrative and recordkeeping fees.
In August 2019, Schlichter Bogard & Denton achieved preliminary approval of a $14 million settlement on behalf of plan participants – the actual value of which the United States District Court noted was estimated at nearly $34.8 million when considering the economic benefits guaranteed by the settlement, including a requirement that Johns Hopkins issue a request for competitive bids for recordkeeping and administrative services, restrict recordkeepers’ ability to cross-sell non-plan products and services to participants, and retain an independent consultant to analyze the plan’s investment structure.
The United States District Court has now finally approved the settlement. The Court also recognized that Schlichter Bogard & Denton filed the first-ever ERISA 403(b) excessive fee cases, and called the settlement an “excellent result on behalf of the class” born of “a willingness by counsel to risk very significant amounts of time and money in the face of vigorous resistance by the defendants.”
“Without the unique and unparalleled foresight for this novel area of litigation by Schlichter Bogard & Denton, the class would not have obtained any recovery for the alleged fiduciary breaches that affected the Johns Hopkins University 403(b) plan for years prior,” the Court added.
The John Hopkins settlement underscores our commitment to achieving justice for American workers and retirees – even at great risk. To stay up-to-date on other high-impact retirement plan cases handled by Schlichter Bogard & Denton, click here. For additional information about Schlichter Bogard & Denton, please contact us at 800-873-5297 or sbd@uselaws.com.
