Benefits & Executive Compensation News

Oracle Inks $12 Million Deal to End 70,000-Person 401(k) Suit (1)

Feb. 27, 2020, 1:49 PMUpdated: Feb. 27, 2020, 9:58 PM

Oracle Corp. will pay $12 million to end a 70,000-person class action challenging the fees and management of its 401(k) plan, the parties told a federal judge in Colorado.

The deal ends four years of litigation between the California software company and employees who said it drained millions from its 401(k) plan through a bad deal with the plan’s record-keeper, Fidelity Management Trust Co. Oracle defeated all but two of the employees’ pending claims in 2019.

The settlement highlights the “constant need to be monitoring funds and ensuring that the plan sponsors and the trustees are doing what they can...

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