Fujitsu workers involved in a class action lawsuit told a California federal judge that they’ve come to a $14 million deal with the company. Fujitsu agreed to pay to end a nearly $150 million proposed class action alleging that the company paid more fees than necessary to invest the retirement funds of nearly 23,000 current and former workers.
The workers asked U.S. Magistrate Judge Nathanael M. Cousins to approve a deal, stating that the settlement compares favorably to other 401(k) settlements. The deal is worth roughly $600 per class member and a full one percent of the plan’s total value.
Fujitsu Class Action Alleges Firm Mismanaged Retirement Funds
Fujitsu is a Japanese multinational information technology equipment and services company whose products are available in over 100 countries. In 2015, it was the world’s fourth-largest IT services provider measured by IT services revenue.
In June 2016, workers sued the company’s California office, alleging the tech firm mismanaged their retirement plans. The suit claims that the company deprived its workers of returns by buying more expensive classes of funds than necessary. It also claims that the company did not monitor the record-keeping and administrative fees it paid, and the plan’s offerings included “excessively costly investments”.
The proposed deal will pay a class of 22,705 members—all of whom participated in the company’s 401(k) plan between June 2010 and September 2017. The payments will be based on the value of the investors’ investments at certain points in the class period. Less weight will be applied to assets held after Fujitsu revised its 401(k) plan in 2016.
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