Midwest law firm wins record $62M settlement from Lockheed in suit over 401(k) fees
Lockheed Martin Corp. has agreed to pay $62 million to settle a federal lawsuit by a St. Louis law firm contending that it charged excessive fees and in its 401(k) plans.
The amount is a record high settlement for a case of this kind, reports the Wall Street Journal (sub. req.). With some $27 billion in assets, Lockheed’s 401(k) plan is one of the largest in the U.S.
“We are pleased to have achieved this historic settlement,” said attorney Jerome Schlichter of Schlichter, Bogard & Denton.
In a written statement, Lockheed says it admitted no liability or wrongdoing but “agreed to settle this matter so that we can return our focus to the critical and important work we are performing for our customers.” The amount of the settlement, the company pointed out, is less than 5 percent of what the plaintiffs in the case sought.
The settlement in the Southern District of Illinois case must still be approved by a judge before it is final.
Hat tip: St. Louis Business Journal
Related coverage:
ABAJournal.com: “Suits Target 401(k) Fees”
