Smith+Nephew has agreed to settle a potential class-action lawsuit regarding the managed account fees for its 401(k) plans.
In an amendment complaint, the plaintiffs alleged that Smith+Nephew improperly utilized forfeited 401(k) plan assets, paid unreasonable compensation for plan’s planning and advice service and failed to properly monitor the Plan Committee.
Through the settlement, Smith+Nephew will pay a total of $350,000 to about 29,000 settlement class members. The settlement class includes any individuals who participated in the Smith+Nephew US Savings Plan between Aug. 30, 2018, and the date that the preliminary approval order is entered.
The gross settlement amount represents 18.4% of the total amount demanded for excessive managed account fees.
The plaintiff’s memorandum of law in support of motion for preliminary approval of class action settlement was filed with the U.S. District Court for the District of Massachusetts on Feb. 13.
