ADP, 401(k) Participants Agree to Class of 50,000 in ERISA Suit

Automatic Data Processing Inc. agreed to have a lawsuit challenging its management of a large 401(k) plan certified as a class action covering more than 50,000 people.

The parties on Tuesday filed a stipulation that would allow the case to move forward as a class action covering all participants in the ADP TotalSource Retirement Savings Plan since May 2014. They also proposed a subclass of participants who used the plan’s allegedly high-cost managed account services since that time.

The ADP plan, which holds $4.4 billion in assets, is a multiple employer plan covering thousands of employees of companies that contract ...