Philadelphia’s CDI Corp. Signs $1.8 Million 401(k) Settlement

Philadelphia-based engineering company CDI Corp. will pay $1.8 million to settle a proposed class action challenging its 401(k) plan fees, federal court papers show.

The deal, filed Monday in the U.S. District Court for the Eastern District of Pennsylvania, is expected to benefit more than 4,100 people covered by the company’s $263 million retirement plan. It resolves allegations that CDI failed to implement a proper system for evaluating the plan’s investment options, causing the plan to offer expensive, actively managed funds and retail share classes in lieu of cheaper and better performing alternatives.

The settlement comes seven months after Judge ...