ST. LOUIS--(BUSINESS WIRE)--Schlichter, Bogard & Denton, a leading national law firm, announced today that it has reached a $16.75 million settlement with Northrop Grumman, on behalf of the company’s employees and retirees. In the matter of In re Northrop Grumman Corp. ERISA Litig., the plaintiffs alleged, amongst other claims, that Northrop fiduciaries violated their duties to employees in two 401(k) retirement plans, by improperly causing those plans to pay Northrop for administrative services.
“After 10 years of litigation, we are pleased that the employees and retirees of Northrop Grumman will now benefit from this settlement,” said Jerry Schlichter, Managing Partner at Schlichter, Bogard & Denton. “We look forward to continuing our work on behalf of these employees and retirees, as we seek to obtain further compensation for losses sustained from 2010 to the time of the next trial.”
A motion for approval of the settlement was filed today by the parties in the Court of Judge Andre Birotte Jr. of the U.S. District Court for the Central District of California. The case was originally filed in 2006. The trial began in Los Angeles on March 14, 2017, and the settlement was reached after three days of trial. The settlement extends to conduct occurring between September 28, 2000 and May 11, 2009.
The settlement does not cover claims raised in Marshall v. Northrop Grumman Corp., a second case against Northrop filed by Schlichter, Bogard & Denton on September 9, 2016. This litigation has similar allegations on behalf of Northrop employees and retirees, for conduct occurring from 2010 to the present, a period of time not covered by today’s settled case. Marshall v. Northrop remains pending in the same court.
Schlichter, Bogard & Denton pioneered excessive fee 401(k) litigation on behalf of employees and retirees. Since 2006, the firm has filed over 20 such complaints and secured 13 settlements on behalf of employees. In 2009, the firm won the only full trial of a 401(k) excessive fee case against ABB. In 2015, the firm achieved a unanimous victory on behalf of employees, in the only 401(k) excessive fee case taken by the U.S. Supreme Court. In 2016, the firm brought excessive fee suits against 12 major universities with defined contribution retirement plans.
Jerry Schlichter has been referred to by federal judges as a “private attorney general,” causing fees to come down in the entire 401(k) industry, with this litigation contributing to a reduction in fees of over $2.8 billion per year. Federal judges have described Mr. Schlichter and his firm as “preeminent” in the field of 401(k) fee litigation; as demonstrating “extraordinary skill and determination”; as making “a significant, national contribution,” having “educated plan administrators, the Department of Labor, <and> the courts” about fees and fiduciary obligations.
About Schlichter, Bogard & Denton, LLP
Schlichter, Bogard & Denton, LLP, of St. Louis is a national law firm that represents individuals, including victims of financial abuse and 401(k) plan investors, whose plans suffer from excessive fees or imprudent investment options. Its attorneys are dedicated to helping financial abuse victims, and helping employees and retirees secure the retirement benefits they deserve.
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