They couldn’t fly from this one. Boeing is the latest company to settle a 401(k)-related class-action lawsuit, which was brought was by 190,000 current and former employees.
The aircraft mega-giant was targeted by Jerome Schlichter of St. Louis-based law firm Schlichter Bogard & Denton, LLP. Schlichter who recently made headlines as lead attorney for plaintiffs in Tibble v. Edison. He also represented the Lockheed plaintiffs and negotiated a $27.5 million deal with Ameriprise Financial Inc. earlier this year. The Wall Street Journal reports that, all told, settlements in eight of his 401(k) fiduciary-related lawsuits have brought in $214 million, with about a third of that going to Schlichter’s firm.
As the Journal notes, the settlement came last week, the same day a trial was scheduled to begin in the nine-year-old case. Terms weren’t disclosed. The two sides are expected to update the court on details of the talks next month and set a timeline for seeking final approval, according to a court order.
As with Tibble, the class-action suit centered on Boeing’s alleged failure to exercise its fiduciary duties to employees by allowing excessive 401(k) fees, choosing higher-cost retail mutual funds over cheaper institutional shares, and improperly engaging revenue sharing with third-party investment vendors.
Boeing has consistently denied the claims.
Schlichter said he was prepared to go to trial and was pleased to reach a tentative settlement. He said his firm continues to be committed “to improving the 401k savings plans that millions of Americans rely on for a secure retirement.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of 401(k) Specialist and Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots. Experienced financial services content executive specializing in creative new media delivery. He joined the American Retirement Association in 2023 as Chief Content Officer, overseeing communications for the organization, as well as its sister organizations.