North Carolina’s WakeMed OK’d for $975,000 Deal in 401(k) Suit

North Carolina health system WakeMed can pay $975,000 to settle a class action claiming its retirement plan offers expensive mutual funds and charges excessive administrative fees, a federal judge ruled.

The deal, which is expected to benefit more than 13,000 participants in WakeMed’s $715 million retirement plan, also requires the health system to seek proposals from third-party vendors to ensure the plan is receiving the best deals on investment advisory, record-keeping, and administrative services. The settlement amount represents 21.6% of the plan participants’ estimated recoverable damages, according to the parties’ settlement motion.

Judge James C. Dever III of the ...