Teva Signs $2.55 Million 401(k) Settlement After Zoom Mediation

Teva Pharmaceuticals USA Inc. will pay $2.55 million to settle an ERISA class lawsuit by former employees who claim the company’s 401(k) plan charged excessive administrative fees while offering pricey mutual funds, the parties told a federal judge in Philadelphia.

The settlement covers more than 14,000 participants and beneficiaries in Teva’s $1.9 billion 401(k) plan. It resolves a proposed class action accusing plan fiduciaries of allowing expensive mutual funds to remain in the plan without properly considering cheaper alternatives such as collective investment trusts, lower-cost share classes, and passively managed investments.

The deal, announced in filings Wednesday, comes eight months ...