Jack Henry Agrees to $1.6 Million Settlement Over 401(k) Fees

Jack Henry & Associates Inc. agreed to pay $1.6 million to end a proposed class action challenging the fees tied to the financial technology company’s 401(k) plan.

The proposed agreement, announced Thursday, would benefit more than 8,000 people covered by the company’s retirement plan since October 2017. It represents an $800,000 payment for plan participants’ claims of high administrative fees—about 26% of their maximum calculated damages on this claim—along with an $800,000 payment for their challenge to the plan’s stable value fund, which they said carried an “uncertain” amount of damages.

More than 100 employers have negotiated class settlements ...