Insurance Services Office agreed to pay $4 million to settle a lawsuit filed by former employees who accused the company and fiduciaries of violating ERISA by mismanaging the company's 401(k) plan.
The settlement notice was filed Dec. 6 in a U.S. District Court in Newark, N.J., in the case of Peterson et al. vs. Insurance Services Co. Inc. et al. The document was filed by plaintiffs' attorney, who noted the agreement is unopposed by defendants.
"Defendants deny each of these claims and deny that they ever engaged in any wrongful conduct," the document said.
The agreement, which requires court approval, also said the defendants must, within five years of the settlement's effective date, conduct an RFP for record-keeping services.
The former employees sued in September 2020, saying the plan fiduciaries chose and retained investment options that were more expensive than similar investments in the marketplace. They also alleged fiduciaries failed to control record-keeping expenses and that the company failed to monitor and evaluate its fiduciaries.
Defendants sought dismissal of all complaints. In April 2021, a federal judge dismissed the allegation that defendants put their interests ahead of participants' benefits, but the other allegations were allowed to proceed. The parties subsequently agreed to mediation which led to an agreement in principle in October 2023.
The ISO 401(k) Savings and Employee Stock Ownership Plan, Jersey City, N.J., had assets of $1.86 billion as of Dec. 31, 2022, according to the latest Form 5500.