Edison Hit With $7.5M Judgment in Long-Running 401(k) Suit

Edison International must pay more than $7.5 million to compensate employees for its decision to include high-fee retail share mutual funds in its 401(k) plan when identical institutional share classes were available at lower cost (Tibble v. Edison Int’l, 2017 BL 287522, C.D. Cal., No. 2:07-cv-05359-SVW-AGRX, 8/16/17).

This decision by a federal judge in California is only the second judgment reached after trial in a case accusing a 401(k) plan fiduciary of imprudent and disloyal investment selection. The first involved a $13.4 million judgment against ABB Inc. that was upheld by an appeals courtin 2014.

The judge ...