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Two Excessive Fee Suits Settled

ERISA

While it’s unlikely to be “two for the price of one,” with a trial date looming, the parties in an excessive fee suit have come to terms – on two separate cases.

Safeway Inc. has settled two proposed class actions regarding its 401(k) plan just two weeks before the trial date. In one, Safeway and its recordkeeper (now Empower, by way of Great-West, by way of J.P. Morgan Retirement Plan Services) were sued by plan participant Dennis M. Lorenz for selecting target-date funds (JPM Smartretire Passiveblend Funds) affiliated with its recordkeeper. The other class action (Lorenz v. Safeway Inc.) raised general concerns regarding the plan’s investments and fee structure.

The cases were slated to go to trial on May 7. 

However, one issue that was not resolved by the action: AON Hewitt Investment Consulting, Inc.’s role in the target-date fund case.

Oh – and as for the terms of the settlement? They’re not yet public, but should be by July.

Trucker Huss APC is representing the Safeway defendants. Representing the plaintiffs in the JPMorgan funds case are Schneider Wallace Cottrell Konecky Wotkyns LLP. The other group is represented by Shepherd Finkelman Miller & Shah LLP, Olivier Schreiber & Chao LLP, and the Law Office of Sahag Majarian II.

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