THE WHAT? L Brands has agreed to pay US$2.75 million settlement as part of a class action lawsuit, relating to claims the company charged unreasonable fees as well as making high-cost investments with employee 401(k) funds, according to Top Class Actions.
THE DETAILS Former and current plan participants of L Brands’ 401(k) claim that they lost money due to the company failing to meet its fiduciary duties under the Employee Retirement Income Security Act (ERISA).
L Brands is said to have allowed service providers to charge unreasonable record-keeping and administrative expenses to the plan, as well as allegedly selecting high-cost investments for the plan, as opposed to better ones that would have resulted in better plan performance.
THE WHY? The ERISA class action lawsuit claims, “Plaintiff and all Plan participants suffered financial harm as a result of the Plan’s imprudent investment options and excessive fees, and were deprived of the opportunity to invest in prudent options with reasonable fees, among other injuries.”
The settlement will benefit participants of L Brands’ 401(k) savings and retirement plan between November 23, 2014, and September 20, 2022.
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