Auto Part Maker Meritor Settles 401(k) Lawsuit for $470,000

Auto part maker Meritor Inc. will pay $470,000 to resolve a proposed class action challenging the administrative fees and investment options in its $616 million 401(k) plan, according to federal court papers filed in Detroit.

The deal is expected to benefit more than 5,000 people covered by the Meritor plan. In addition to a monetary payment, it requires the company to put the plan’s administrative and record keeping services up for competitive bidding within two years, the parties said in a settlement motion filed Tuesday in the U.S. District Court for the Eastern District of Michigan.

The Employee Retirement Income ...