401k

Judge Calls for Further Details, Declining $2.5 Million Settlement in NVIDIA 401(k) Lawsuit

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SAN JOSE, Calif. — A U.S. District Judge has recently dismissed a proposed settlement in a lawsuit alleging mismanagement of NVIDIA’s 401(k) plan. The $2.5 million agreement did not suffice for Judge Edward Davila, located in San Jose, who has requested additional information before approving the deal. The lawsuit, initiated by employees participating in the technology company’s 401(k) plan, accused plan administrators of several missteps, including the failure to properly oversee the plan, resulting in excessive fees and underperforming investments. The legal battle underscores the growing scrutiny over how retirement plans are managed, particularly in … Read more

ADP 401(k) Participants Lose Jury Trial Bid in Class Action Over Excessive Fees

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Newark, NJ — A group of over 50,000 participants in the Automatic Data Processing Inc. (ADP) 401(k) retirement plan recently faced a setback in their class-action lawsuit against the human resources management software company. The plaintiffs had hoped to challenge what they deemed to be undue and excessive management fees levied on their retirement investments via a jury trial. However, their request was denied on grounds that their case seeks what is legally categorized as an “equitable remedy.” The decision was handed down by Magistrate Judge José R. Almonte of the U.S. District Court for … Read more

UnitedHealth Settles for $69 Million in Landmark 401(k) Performance Lawsuit

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UnitedHealth Group Inc., has agreed to a settlement of $69 million after facing a lawsuit that accused the health insurance giant of including subpar investment choices in its employee 401(k) plan. This legal confrontation draws attention to the broader implications of employer responsibilities in managing retirement funds, emphasizing the critical need for vigilance and accountability in overseeing employee investments. The lawsuit, which underscored the potential detriments of poor fund performance on employees’ retirement savings, argued that UnitedHealth failed to remove or replace underperforming investments. The settlement serves a dual function: it compensates affected employees and … Read more

American Airlines Faces Class-Action Lawsuit Over ESG Investments in Employee 401(k) Plans

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DALLAS — A high-stakes lawsuit filed against American Airlines could potentially reshape employer practices around the use of ESG (environmental, social, and governance) funds in retirement saving strategies. The class-action case, filed by employees who object to the incorporation of ERE funds in their 401(k) plans, targets what the plaintiffs describe as the prioritizing of “leftist political agendas” in investment decisions. The lawsuit emerged from a pilot’s allegation that American Airlines neglected its duty to prioritize financial returns by choosing funds managed with ESG strategies in mind. Led by pilot Bryan Spence, it implicates some … Read more