Amway settlement overview:
- Who: Alticor Inc. has reportedly agreed to a $1.5 million Amway settlement.
- Why: Alticor allegedly allowed funds in the Amway 401(k) plan to underperform and allowed excessive fees.
- Where: The motion for preliminary approval of the Amway settlement was filed in Michigan federal court.
Alticor Inc., the parent company of Amway, reached a $1.5 million settlement over allegations its employee 401(k) plan included underperforming funds and had excessive fees, Law360 reports.
The plaintiffs urged a Michigan federal judge to give an initial green light to the proposed Amway settlement.
“Plaintiffs believe this is an excellent result which will grant relief to over 5,000 participants,” the Amway settlement filing says.
“In the absence of settlement, the parties would litigate the remaining claims at trial, incurring more expert, research, court and travel costs,” the plaintiffs says in their Amway settlement approval motion.
The plaintiffs say the Amway settlement was negotiated at arm’s length with the assistance of an experienced mediator and will provide eligible class members with “adequate and equitable” relief.
Amway settlement to resolve ERISA class action claims filed in 2020
Their Amway class action lawsuit was initially filed in November 2020 and asserted claims under the Employee Retirement Income Security Act. The plaintiffs asserted Alticor and related defendants breached their fiduciary duty by failing to remove poorly performing funds from the Amway 401(k) plan.
The plaintiffs also claim the Amway 401(k)’s recordkeeping costs ranged from $200 to $335 per participant when reasonable rates for plans of its size are generally about $35 per participant.
The Amway class action lawsuit was certified in March 2023.
Amway settlement class members are defined as “all persons, except individual defendants and their immediate family members, who were participants in or beneficiaries of the plan, at any time during the class period, and any alternate payee of a person subject to a QDRO who participated in the plan at any time” since Nov. 19, 2014.
Eligible class members may be entitled to payment from the Amway settlement if a judge grants it final approval.
Last year, Whole Foods faced a similar class action lawsuit alleging the company mismanaged its 401(k) plan.
What do you think about the Amway settlement? Join the discussion in the comments.
The plaintiffs are represented by Mark K. Gyandoh of Capozzi Adler PC and Peter A. Muhic of Muhic Law LLC.
The Amway class action lawsuit is Garcia, et al. v. Alticor Inc., et al., Case No. 1:20-cv-01078, in the U.S. District Court for the Western District of Michigan.
Don’t Miss Out!
Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!
Read About More Class Action Lawsuits & Class Action Settlements:
3 thoughts onAmway parent company agrees to $1.5M settlement over employee 401(k) plan
Please add
Add me
Please add me