U.S. District Court Judge Marvin Katz approved a settlement in a lawsuit against Ikon Office Solutions Inc.s $400 million 401(k) plan, removing the restriction forcing participants to keep their company match in company stock until age 55. Instead, employees will be required to hold the matching contribution in stock for only two years, explained Michael Walsh, vice president, litigation, for Ikon. The class-action suit, filed in U.S. District Court in Philadelphia, claimed the Malvern, Pa.-based company breached its fiduciary duties by requiring employer contributions to be in company stock, offering company stock as an investment option, failing to give accurate and complete information about the company stock, and having conflicts of interests between the company and the plan.
Participants will not receive a cash settlement in this case, Mr. Walsh said.
Attorneys representing the plan participants could not be reached for comment by press time.