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Thousands of 401(k) holders may be able to take part in a $1.8 million class action settlement with CDI Corp, ending claims that the engineering company violated federal laws protecting retirement plans.
Lead plaintiffs Adam Crawford, Lucia Depretto, and Megan Bennett accused CDI of violating the Employee Retirement Income Security Act (ERISA) in a class action lawsuit filed in Pennsylvania federal court in July 2020. They claimed that the Pennsylvania-based engineering firm failed to update the investments it offered to 401(k) participants, leaving them with expensive, poorly performing options.
The class action settlement will benefit those who participated in a 401(k) retirement plan through CDI between July 2014 and the present, approximately 4,000 individuals, according to court documents.
“The benefit of the proposed settlement must be considered in the context of the risk that, in its absence, protracted litigation might lead to little or even no recovery on behalf of the proposed settlement class,” the plaintiffs’ motion for preliminary approval of the settlement agreement.
“In contrast to the complexity, delay, risk and expense of continued litigation, the proposed settlement will produce certain and substantial recovery for the settlement class,” the motion continued.
The class action lawsuit alleged that the engineering firm neglected to review the investment options provided to those participating in the company’s 401(k) Saving Plan. Instead, CDI kept the same, expensive, underperforming investments, alleged the plaintiffs.
The class action lawsuit accused the company of violating federal law protecting retirement plan holders – ERISA.
ERISA is actually a collection of federal statutes that together, protect the interests of workers in the private sector by regulating employee benefit plans by establishing minimum standards. Under ERISA, employers that offer retirement plans must meet certain benchmarks when it comes to record-keeping, disclosure, and plan offerings.
In March, CDI agreed to pay $1.8 million to end the litigation after the parties engaged in mediation, according to court documents.
“Defendants mounted a vigorous defense at the early stages of the litigation, and plaintiffs expect that defendant would have continued to do so during discovery, trial and, potentially, through appeal,” says the plaintiffs’ motion for preliminary approval of the class action settlement.
Do you participate in a 401(k) retirement plan? Are concerned about your investment options? We want to hear from you! Tell us about it in the comment section below.
The plaintiffs and Class Members are represented by Eric Lechtzin and Marc Edelson of Edelson Lechtzin LLP.
The CDI 401(k) Class Action Lawsuit is Crawford et al. v. CDI Corp. et al., Case No. 2:20-cv-03317, in the U.S. District Court for the District of Pennsylvania.
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4 thoughts on$1.8M Settlement in 401(k) Class Action Lawsuit Lodged Against Engineering Co
My father retired and CDI is claiming they don’t have a 401k for him but the social security office sent his 401k info to him. How do we claim this account if CDI won’t work with us?
I have been employed with CDI since 2006 and have not recieved a letter about 401 am I not qaulified
I’m a formal CDI employee and received notice of this law suite stating that I’m part of it and do not have to do anything. How much will I receive and when will this be paid out?
I am a participant in the class action suit of Crawford vs CDI as I was a CDI employee during the entire period identified in this suit. How much will I receive and when?