The attorneys who negotiated a $ 28.5 million settlement with Fidelity Investments through the affiliated funds in their 401 (k) plan are eligible for nearly $ 10.5 million in attorney fees and expenses for their efforts, ruled a federal judge in Boston.
Judge William G. Young of the US District Court for the Massachusetts District approved a fee of one third of the settlement amount in a bilateral order dated February 26. Young also cleared nearly $ 1.5 million in litigation and settlement administration costs.
The settlement, which is expected to benefit approximately 41,000 participants and beneficiaries of Fidelity’s 401 (k) plan, triggers a lawsuit accusing Fidelity of filling the $ 17 billion plan solely with Fidelity-related investments, with which fees were earned for the company. It comes almost a year after Young discovered that Fidelity breached its duties under the Employee Retirement Income Security Act in administering the plan.
Fidelity is among the dozen of financial firms that have been sued by their employees for adding related investment products to their 401 (k) plans. Several companies have signed multi-million dollar settlements, including Reliance Trust Co. ($ 39.8 million), McKinsey & Co. ($ 39.5 million), SunTrust Banks Inc. ($ 29 million) Dollars), BB & T Corp. ($ 24 million) and Deutsche Bank ($ 21.9 million).
Nichols Kaster PLLP and Block & Leviton LLP represent the plan participants. Goodwin Procter LLP stands for Fidelity.
The case is Moitoso v. FMR, LLC, D. Mass., No. 1: 18-cv-12122, 02/26/21.