Engineering Co has reached $1.8M Settlement in a 401(k) Class-Action Lawsuit

Engineering Co has reached $1.8M Settlement in a 401(k) Class-Action Lawsuit

Thousands of 401(k) holders may be able to take part in a $1.8 million class-action settlement with CDI Corp, ending claims that the engineering company violated federal laws protecting retirement plans.

Lead plaintiffs Adam Crawford, Lucia Depretto, and Megan Bennett accused CDI of violating the Employee Retirement Income Security Act (ERISA) in a class action lawsuit filed in Pennsylvania federal court in July 2020. They claimed that the Pennsylvania-based engineering firm failed to update the investments it offered to 401(k) participants, leaving them with expensive, poorly performing options.

The class action settlement will benefit those who participated in a 401(k) retirement plan through CDI between July 2014 and the present, approximately 4,000 individuals, according to court documents.

The class action lawsuit alleged that the engineering firm neglected to review the investment options provided to those participating in the company’s 401(k) Saving Plan. Instead, CDI kept the same, expensive, underperforming investments, alleged the plaintiffs.

ERISA is actually a collection of federal statutes that together, protect the interests of workers in the private sector by regulating employee benefit plans by establishing minimum standards. Under ERISA, employers that offer retirement plans must meet certain benchmarks when it comes to record-keeping, disclosure, and plan offerings.

Source: https://www.law360.com/pennsylvania/articles/1392152/engineering-co-to-pay-1-8m-to-settle-erisa-class-action