Boeing Settles Lawsuit Accusing Company of Mishandling 401(k) Plan

via Wall Street Journal

A lawsuit accuses Boeing of improperly making 401(k) plan decisions to benefit vendors receiving other Boeing business.

Boeing Co. agreed on Wednesday to a preliminary deal to settle a long-running lawsuit accusing the company of mishandling its 401(k) plan to the detriment of its employees.

The settlement comes the day a trial was scheduled to begin in the nine-year-old case. Terms weren’t disclosed. The two sides are expected to update the court on details of the talks next month and set a timeline for seeking final approval, according to a court order.

Filed on behalf of 190,000 Boeing employees and retirees, the class-action suit accused Boeing of failing to uphold its fiduciary duties to employees by allowing excessive 401(k) fees to go unchecked, choosing higher-cost retail mutual funds over cheaper options, and improperly making 401(k) plan decisions to benefit vendors receiving other Boeing business.

Boeing, which has defended its 401(k) practices and denied the claims, had no comment Wednesday on the settlement.

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About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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