Walgreen’s Cleared for $13.75 Million Deal in 401(k) Fund Suit

A $13.75 million settlement between Walgreen Co. and a class of 200,000 participants in the pharmacy’s 401(k) plan received final approval from a Chicago federal judge, ending litigation over a suite of target date funds from Northern Trust.

Plan participants say the settlement is about 40% of the $34 million in estimated damages calculated by their expert. Walgreens has already removed the challenged funds from its 401(k) plan and will use an investment adviser to provide ongoing investment monitoring services for the next three years, according to the participants’ settlement motion.

Judge Charles R. Norgle Sr. of the U.S. ...