Red Cross Workers Score $950,000 Deal in 401(k) Fee Challenge

The American National Red Cross agreed to pay $950,000 to settle a proposed class action challenging the administrative fees and Northern Trust target date funds in its retirement plan.

The deal, which is slated to benefit more than 20,000 retirement plan participants, represents about 7% of the total potential damages in the case, according to a motion for settlement approval filed May 9 in the US District Court for the District of Columbia.

The four-year-old-lawsuit says the Red Cross failed to rein in administrative fees in its retirement plan while offering poorly performing target date funds from Northern Trust, which ...