Plaintiffs v Caterpillar
Caterpillar Suit Could Lower 401(k) Fees; Company Agrees To Investor-Friendly Changes
Caterpillar ( CAT - news - people ), the heavy equipment manufacturer in Peoria, Ill., has agreed to settle a class action alleging that employees and retirees in its 401(k) plans were overcharged by potentially millions of dollars.
If a federal judge and independent fiduciary approve the deal the parties struck, Caterpillar will pay $16.5 million to settle the case. More importantly, it has agreed to make changes to its 401(k) plan that could potentially save employees millions of dollars, and it may set a precedent for other companies to follow.
The company also agreed, after three years in court, to make changes to its 401(k) plans along the lines that investor advocates have been fighting for in Congress.
Caterpillar says that during a two-year settlement period it "will increase and enhance communication with employees about 401(k) investment options and associated fees." A memorandum filed by plaintiffs in support of the settlement says Caterpillar would detail specific fees charged to participants.
For more information please contact:
Jerome Schlichter
Schlichter, Bogard & Denton
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Email: sbd@uselaws.com
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