Benefits & Executive Compensation News

Northrop Grumman Settles 401(k) Fee Class Action for $16.8M

June 12, 2017, 1:49 PM

Northrop Grumman Corp. agreed to pay nearly $16.8 million to settle a decade-old lawsuit challenging the administrative fees associated with the company’s 401(k) plans (In re Northrop Grumman Corp. ERISA Litig., C.D. Cal., No. 2:06-cv-06213-AB-JC, motion for settlement approval filed 6/12/17).

The deal, announced in court papers filed June 12, resolves claims by a class of more than 100,000 people who participated in Northrop’s retirement plans between 2000 and 2009. The lawsuit accused Northrop of forcing 401(k) plan participants to pay excessive administrative fees—some of which went directly to Northrop.

This is the latest multimillion-dollar settlement over 401(k)...

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