The University of Chicago Settles Retirement-Plan Lawsuit for $6.5 Million

Posted on June 14th, 2018 at 3:03 PM
The University of Chicago Settles Retirement-Plan Lawsuit for $6.5 Million

From the Desk of Jim Eccleston at Eccleston Law LLC:

As a result of a lawsuit filed in May of 2017, the University of Chicago has agreed to pay $6.5 million to a class of plaintiffs over the mismanagement of its 403(b)-plan.  The University of Chicago is the first prominent university to settle a lawsuit over allegations of retirement-plan mismanagement. There are currently 19 other pending lawsuits filed against universities across the country.

According to the complaint filed in federal court, the class of plaintiffs asserted that the University of Chicago allowed its plan participants to pay excessive record-keeping and investment-management fees, which resulted in a depletion of their retirement savings.

In addition to the monetary payment, as part of the settlement agreement, the University of Chicago has agreed to make structural changes to their 403(b) plan. More specifically, the University of Chicago has promised to not increase record-keeping fees for at least three years as it continues to attempt to reduce the per-participant rate for its retirement plan.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, SEC, University of Chicago, retirement

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