It was the first ERISA case to go to trial, and became as much about how courts measure and price losses to plan participants as it was about sponsors’ fiduciary obligations. (Photo: Shutterstock)
The long odyssey of the first 401(k) excessive fee case appears to be finally ending, as the parties in Tussey v. ABB Inc. have agreed on settlement terms.
The total award will be $55 million, with $20.8 million of that fund going to attorneys’ fees and litigation costs. Three named class representatives in the two ABB 401(k) plans involved in the case will be awarded $25,000, and the remainder will be distributed between plan participants in the class period from December 29, 2000, through December 31, 2007, according to court documents.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
