Emory University, Atlanta, agreed in principle to settle a lawsuit over alleged fiduciary breaches in the management of its defined contribution plans.
The lawsuit, originally filed in August 2016 by law firm Schlichter, Bogard & Denton in U.S. District Court in Atlanta, alleged Emory University and Emory Healthcare, a university-affiliated health system, breached their fiduciary duties by causing participants in their 403(b) plans to pay excessive record-keeping, administrative and investment management fees, and by retaining high-cost and poor-performing investment options.
An April 16 order from U.S. District Judge Charles A. Pannell Jr. notes that the plaintiffs and defendants have "reached an agreement in principle to resolve this matter" and have requested time to finalize the terms of the settlement.
The motion for preliminary approval of the settlement is due on or before May 29, according to a court filing.
"Emory values our faculty and staff and strives to provide significant benefits to them. We remain committed to offering a range of investment options to provide flexibility in meeting the individual needs and retirement goals of our employees," the university said in a statement emailed by spokeswoman Laura Diamond.