Vanderbilt Can Settle Retirement Plan Suit for $14.5 Million

Vanderbilt University received preliminary court approval for a $14.5 million settlement to end a class action challenging the fees and investment options tied to its retirement plan.

The deal, which stands to benefit about 40,000 participant’s in Vanderbilt’s retirement plan, is the largest settlement in the recent series of lawsuits accusing prominent universities of plan mismanagement. It follows settlements announced by Duke University ($10.65 million), the University of Chicago ($6.5 million), and Brown University ($3.5 million).

Vanderbilt’s settlement includes an unusual provision related to plan participants’ personal data and the practice of cross-selling, which is when a company tries ...