Genentech Inks $250,000 Deal in 401(k) Lawsuit as Appeal Looms

Biotechnology company Genentech Inc. will pay $250,000 to settle claims that its 401(k) plan paid excessive recordkeeping fees in a proposed deal that allows other aspects of the case to be appealed to the Ninth Circuit.

The settlement amount represents about 34% of the “midpoint of realistically recoverable damages” associated with plan participants’ challenge to recordkeeping fees, according to a settlement motion filed Tuesday in the US District Court for the Northern District of California. It also “preserves for appeal” the participants’ claim that Genentech failed to properly monitor the plan’s investments and kept bad funds in the plan.

The ...