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Serco Inc, a navy defense contractor, will pay $1.2 million to end a class action lawsuit alleging it subjected 401(k) holders to excessive fees and other violations of a federal law protecting retirement plans.
Class Members number approximately 30,000 and include those who participated in a Serco 401(k) plan. Those who are still participating will receive settlement awards through their retirement fund. Class Members who no longer participate in a Serco 401(k) will receive a check.
Serco is a Navy defense contractor that offers information technology services.
The class action lawsuit accused Serco of violating the Employee Retirement Income Security Act (ERISA). ERISA requires employers to meet certain standards for employee retirement accounts, such as 401(k) plans, as well as pensions and certain disability insurance policies.
Lead plaintiff Rober Glasscock claimed that Serco violated ERISA with high fees on its 401(k), as well as poor investment options in his nationwide class action lawsuit filed in January of last year.
The class action lawsuit contended that Serco selected mutual funds that charged twice the average expense ratio than other options.
“The plan…inexplicably failed to select these lower fee-charging and better-return producing share classes,” explained the complaint.
Glasscock also accused Serco of charging excessive fees for recordkeeping. Further the defense contractor kept the same company for its retirement plan recordkeeping despite the excessive fees instead of soliciting bids.
“As well, the administrative fees charged to plan participants by the recordkeeper, also unnamed, were consistently greater than the fees of more than 90% of comparable 401(k) plans, when fees are calculated as cost per participant or when fees are calculated as a percent of total assets,” stated the class action lawsuit.
The class action settlement is seeking court approval.
Will you be able to take part in the Serco 401(k) class action settlement? Tell us about it in the comment section below!
The plaintiff is represented by David Hilton Wise and John J. Drudi of Wise Law Firm, PLC, Scott C. Harris and Patrick M. Wallace of Whitfield Bruson & Mason LLP, Greg F. Coleman, Arthur Stock, and Ryan P. McMillan of Greg Coleman Law, Charles Crueger and Benjamin Kaplan of Crueger Dickinson LLC, and Jordan Lewis of Jordan Lewis, P.A.
The Serco 401(k) Fee Class Action Lawsuit is Glasscock v. Serco, Inc., Case No. 1:20-cv-00092-RDA-JFA in U.S. District Court for the Eastern District of Virginia, Alexandria Division.
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6 thoughts onNavy Defense Contractor Serco To Pay $1.2M in 401(k) Fee Class Action Lawsuit
Please add me I also qualify for this payment
Please add me. I qualify for this.
Add me
I qualify. When we know. Court date already passed. When should we expect it to happen.
Received a letter from SSA about my SERCO INC 401 K from 2009 for unpaid amount of $310
Plan #22-2902286-003, Benefits type A
Please add me i qualify thanks