Pentegra Strikes $48.5 Million Deal After Rare Jury Verdict (2)

Pentegra Services Inc. signed a $48.5 million class settlement with 401(k) plan participants who recently scored a rare, multimillion-dollar jury verdict in their lawsuit challenging the plan’s administrative fees.

The July 2 deal comes two months after an eight-person jury awarded plan participants $38.8 million in damages after unanimously concluding that Pentegra and the plan’s board of directors breached their fiduciary duties by causing the plan to pay unreasonable administrative fees.

The 26,000-person class action centers on fees charged by a $2.1 billion retirement plan covering employees across hundreds of different financial institutions. In addition to a monetary payment, the ...