ºüÀêÊÓƵ attorneyÌýJerome Schlichter,Ìýwho Ìýthe No. 1 enemy of 401(k) profiteers, got court approval this month for settlements on behalf ofÌýworkers atÌýÌýandÌý
The Lockheed Martin settlement is for $62 million, which a says is the largest amount ever for a 401(k) suit against a single employer. The settlement was reached in December, shortly before the case was scheduled to go to trial in federal court in East ºüÀêÊÓƵ.
People are also reading…
The Ameriprise settlement, approved by a federal judge in Minnesota, totals $27.5 million.
Both companies agreed to reduce fees and make other improvements in their 401(k) plans.Ìý
Schlichter's firm, Schlichter Bogard & Denton, had alleged that Lockheed Martin's plan invested in funds that charged excessive fees and left too much money in low-yielding money-market accounts. The firm accused Ameriprise of allowing excessive fees and breaching its fiduciary duty by investing in Ameriprise's proprietary funds.
Schlicter Bogard & Denton says the settlements will benefit 180,000 current and former Lockheed employees and 46,200 current and former Ameriprise workers. They also will benefit the law firm: The courts awarded it $22.3 million in fees and costs from the Lockheed settlement and $9.9 million from the Ameriprise settlement, .
Since 2006, Schlichter has filed a series of lawsuits accusing some of America's biggest companies of overcharging their employees for 401(k) plans. Past victories include settlements of $16.5 million withÌýCaterpillarÌýand $30 million withÌýInternational Paper.ÌýIn May, he won a involvingÌýEdison International'sÌýretirement plan.