The accounting firm BDO USA LLP has agreed to settle a lawsuit by three former employees who alleged that the company and its fiduciaries mismanaged a 401(k) plan in violation of ERISA.
The settlement-in-principle notice was filed with a U.S. District Court in Chicago on Dec. 15. No terms were announced, although a court docket sheet said a formal settlement will be filed with the court by Jan. 30.
The former employees sued in April 2022 alleging the plan offered retail-priced mutual funds instead of institution-priced mutual funds, retained poor-performing investments, charged excessive record-keeping fees and charged excessive investment management fees.
In March, a federal judge in Chicago dismissed the two excessive-fee allegations but said the other complaints could go to trial in the case of Gaines et al. vs. BDO USA LLP et al.
The BDO USA LLP Retirement Plan, Chicago, had $1.4 billion in assets as of Dec. 31, 2022, according to the latest Form 5500.
