WakeMed’s $975,000 Retirement Plan Deal Filed for Court Approval

WakeMed employees asked a federal judge for final approval of their $975,000 class settlement in a lawsuit claiming the North Carolina Health System’s retirement plan offers expensive mutual funds and charges excessive administrative fees.

The deal, which received preliminary approval from Judge James C. Dever III in May, is expected to benefit more than 13,000 participants in WakeMed’s $715 million retirement plan. It also requires the health system to seek proposals from third-party vendors to ensure the plan is receiving the best deals on investment advisory, record-keeping, and administrative services, according to a motion filed Wednesday in the U.S. District Court for the Eastern District of North Carolina.

The WakeMed employees also seek an award of one-third the settlement amount—$325,000—as attorneys’ fees for their lawyers at Robbins Geller Rudman & Dowd LLP, Capozzi Adler PC, and Crumley Roberts LLP.

WakeMed is accused of filling its retirement plan with expensive mutual fund share classes when cheaper alternatives were readily available. The company also failed to properly monitor and rein in the plan’s excessive administrative and record-keeping fees, participants allege.

WakeMed was first sued over these alleged violations in December of 2020. That case was voluntarily dropped, and the named plaintiff joined the lawsuit here, which was both filed and settled in April.

WakeMed is represented by Fox Rothschild LLP and Morgan, Lewis & Bockius LLP.

The case is Conte v. WakeMed, E.D.N.C., No. 5:21-cv-00190, motion for final settlement approval 12/1/21.