Serco Ends 401(k) Fee Challenge With $1.2 Million Settlement

Technology services company Serco Inc. will pay $1.2 million to end a proposed class action claiming it filled its $335 million 401(k) plan with expensive mutual funds that could have been obtained at lower cost, according to settlement paperwork filed in the U.S. District Court for the Eastern District of Virginia.

The deal, announced Feb. 12, is expected to benefit about 30,000 participants and beneficiaries in Serco’s 401(k) plan. It allows class counsel to receive up to 33% of the settlement fund as attorneys’ fees.

Serco is accused of mismanaging its 401(k) plan in violation of the Employee Retirement Income ...