The sponsor of the Advance Auto Parts Inc. 401(k) Plan agreed to pay $1.7 million to settle an ERISA lawsuit by current and former plan participants who criticized the plan's record-keeping expenses and investment management.
The agreement was filed Dec. 19 in a U.S. District Court in Roanoke, Va., by the plaintiffs' attorneys.
The settlement also requires the plan's fiduciaries to issue a record-keeping RFP within three years of the court's final approval and to offer two hours of mandatory fiduciary training each year for members of the plan's retirement committee.
"Defendants deny all of these claims and deny that they ever engaged in any wrongful conduct," the settlement document said.
The parties reached an agreement in principle in November. The settlement was achieved through mediation.
Two plaintiffs sued the 401(k) plan sponsor, Advance Auto Stores, the company's board of directors and the plan's retirement committee in October 2021. Four other plaintiffs filed a similar lawsuit in December 2021. The lawsuits were consolidated in April 2022 for the case, Pagans et al. vs. Advance Auto Stores Co. Inc., et al.
Advance Auto Parts Inc. 401(k) Plan, Roanoke, Va., had $902 million in assets as of Dec. 31, 2022, according to the latest Form 5500.