Schlichter Bogard Obtains Final Approval of $48.5 Million Settlement After $38.7 Million Jury Verdict Against Pentegra Services Inc. for 401(k) Participants

Case 7:20-cv-07561-PMH

ST. LOUIS--(BUSINESS WIRE)--National plaintiffs law firm Schlichter Bogard LLC achieved court approval of a settlement of $48.5 million on behalf of 401(k) employees and retirees against Pentegra Services Inc. and members of its Board of Directors. The settlement approval by U.S. District Judge Philip M. Halpern came on December 2, 2025 after an earlier landmark unanimous jury verdict of $38.7 million for breach of fiduciary duty for self-dealing that resulted in excessive fees, following a one-week trial in U.S. District Court in the Southern District of New York.

The plaintiffs alleged that Pentegra violated its fiduciary duty to the plan participants through a conflicted structure in which members of its Board of Directors served on the 401(k) plan’s fiduciary committee, with a duty to make sure fees were reasonable, while at the same time working to maximize profits for the company, and against the interest of employees and retirees. Pentegra Services Inc. and its Board of Directors denied the conflict of interest, and contended the fees charged employees and retirees were reasonable, a claim which the jury rejected.

Jerry Schlichter, founding partner of Schlichter Bogard, said “This will fully restore the 401(k) plan participants’ losses, which the jury found were a result of Pentegra’s highly improper use of plan assets for its own self interest, instead of the interests of the employees and retirees. The settlement will also provide valuable reform of the 401(k) plan to protect them for many years in the future.“

About Schlichter Bogard LLC

Schlichter Bogard LLP, based in St. Louis, MO, has pioneered litigation in excessive fee 401(k) and 403(b) litigation on behalf of employees and retirees. The firm has garnered over $750 million in settlements of such cases since 2009, which numerous federal judges have stated contributed to bringing down fees in the 401(k) industry by $2.8 billion annually. The firm has obtained three unanimous victories in the U.S. Supreme Court on behalf of employees and retirees alleging excessive fees in retirement plans, which are the only such cases ever handled by the U.S. Supreme Court.

For decades, the firm’s attorneys have also delivered justice to injured individuals across the country, achieving numerous significant verdicts and settlements—including dozens of multimillion-dollar awards—for victims of employer negligence, defective products, and other unlawful conduct.