Baker Hughes Defeats Lawsuit Over 401(k) Plan’s Float Income

Baker Hughes Holdings LLC is free from a proposed class action saying the oil field services company mismanages its $3.8 billion 401(k) plan by allowing its third-party recordkeeper to earn unchecked profits.

The plan participants argued that Baker Hughes’ 401(k) recordkeeper received excessive and inappropriate fees because it was allowed to pocket the money earned from “float,” which are assets temporarily held in clearing accounts in connection with contributions and withdrawals. But they didn’t show that the recordkeeper actually retained any of this float income or that float is a retirement plan asset that the company had a fiduciary duty ...