$24M BB&T 401(k) Investment Class Action Settlement Reached

A $24 million settlement has been proposed in a BB&T 401(k) class action which alleged that the company mishandled retirement accounts.

The settlement will provide access to an investment consultant who is unaffiliated with BB&T.

The non-affiliated investment consultant will be able to give an objective assessment of the Class Members’ current 401(k) plans and options for moving forward with future investments.

BB&T will also rebate plan participants for various fees and other monetary compensation which a mutual fund company pays the plan’s record keeper based on the plan’s investments. The settlement also provides training objectives for plan fiduciaries regarding ERISA fiduciary duties.

“We’re pleased that the BB&T employees and retirees will be compensated for their losses and going forward will have improvements to the plan that will enable them to build their retirement assets,” said plaintiff counsel in a statement to Law360.

Plaintiffs in the BB&T 401(k) class action will receive $20,000 each in incentive payments for their services as Class representatives.

Attorneys plan to ask for no more than one third of the settlement fund, or $8 million, for attorneys’ fees and up to $1.1 million in reimbursement for costs and expenses.

BB&T admits no wrongdoing by settling the ERISA class action lawsuit against them. The settlement instead offers a chance for both parties to conclude the costly litigation process.

The vice-president of BB&T’s corporate communications, David R. White, told Law360 that the company remains proud of its “long and successful history of helping both our associates and our clients with their investments and retirement planning.”

“We are pleased to have resolved the claims involving supervision of our 401(k) plan and believe a voluntary settlement is the best way for all parties to move forward, avoid a costly trial and further extend an already lengthy litigation process,” White said in his statement. “At BB&T, our associates are our most valuable resource, and we are proud to be one of only a few companies in the United States that offers both a fully funded pension plan and a 401(k) plan with a generous matching company contribution.”

The settlement resolves a BB&T 401(k) class action which began as two separate suits filed under ERISA which were consolidated in November 2015.

The plaintiffs in the BB&T 401(k) lawsuit claimed that the company breached their fiduciary duties by self-dealing at the expense of the plan participants.

According to the BB&T 401(k) class action, the company used expensive proprietary investment funds managed by themselves to generate a profit regardless of the detrimental effects the actions may have on the plan participants.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

The plaintiffs and Class Members are represented by Jerome J. Schlichter, Troy A. Doles and Heather Lea of Schlichter Bogard & Denton LLP, Kai H. Richter and Carl F. Engstrom of Nichols Kaster PLLP, and David B. Puryear Jr. of Puryear & Lingle PLLC.

The BB&T 401(k) Class Action Lawsuit is Sims, et al. v. BB&T Corp., et al., Case No. 1:15­-cv­-00732, in the U.S. District Court for the Middle District of North Carolina.

UPDATE: March 2019, the BB&T 401(k) class action settlement is now open. Click here to file a claim.