Magna International to Pay $2.9 Million to End 401(k) Challenge

Magna International of America Inc. agreed to pay $2.9 million to resolve a class action by workers challenging the fees tied to their 401(k) plan.

The deal is an “excellent result” that provides a class of more than 20,000 people covered by the Magna retirement plan since 2014 with about 31% of their “best-case” estimated damages, workers said in a motion for preliminary approval of the accord filed Thursday in the US District Court for the Eastern District of Michigan.

The lawsuit says the automotive supplier mismanages its $1.6 billion 401(k) plan by charging excessive administrative fees and offering high-cost ...