Fidelity, Employees Cleared for $28.5 Million 401(k) Settlement

Fidelity Investments’ $28.5 million class settlement with participants in its 401(k) plan who alleged the firm enriched itself through its plan investment menu received preliminary approval from a federal judge in Boston Thursday.

The settlement, which is expected to benefit about 41,000 participants and beneficiaries in Fidelity’s 401(k) plan, is one of the largest deals negotiated in the recent series of lawsuits challenging financial companies that include affiliated investment products in their workers’ 401(k) plan.

The deal resolves a lawsuit accusing Fidelity of filling its $17 billion 401(k) plan “exclusively” with Fidelity-affiliated investments that earned fees for the company. ...