FirstGroup America Inc. and Aon will split evenly a $9 million payment to settle an ERISA complaint filed by current and former participants in a FirstGroup 401(k) plan, according to a document filed Feb. 29 in a U.S. District Court in Cincinnati by the plaintiffs.
The plaintiffs in May 2018 sued FirstGroup, a transportation services company, its fiduciaries and Aon, the investment consultant formerly known as Aon Hewitt Investment Consulting accusing the defendants of allowing high plan fees and of a "radical redesign" of the plan.
However, Aon decided to settle separately in December 2022, but FirstGroup did not. FirstGroup told the court it objected to this settlement because it was "prejudicial" to the company and its fiduciaries.
All parties reached an agreement in principle on Feb. 8, thanks to mediation, in Berry et al. vs. FirstGroup America Inc. et al., resolving FirstGroup's objections to the Aon-only settlement.
"Both Aon Hewitt and the FGA (FirstGroup America) defendants do not oppose" the settlement terms, the Feb. 29 document said. "While all parties continue to firmly believe in the merits of their respective claims and defenses, the time and expense associated with continued litigation weigh in favor of a global settlement."
FirstGroup America Inc. Retirement Savings Plan, Cincinnati, had $356 million in assets as of Dec. 31, 2021, according to the latest Form 5500 filing.
