L3Harris Technologies has agreed to settle a lawsuit by current and former employees who alleged the company and its fiduciaries mismanaged a 401(k) plan.
The plaintiffs accused the defendants of violating ERISA by retaining expensive investments, charging high fees for record keeping and administration, and failing to assess the prudence of the plan's investment lineup.
Attorneys for plaintiffs and defendants filed a notice of agreement Dec. 22 in a U.S. District Court in Orlando, Fla. Terms were not disclosed. Details will be presented to the court by Jan. 31.
The agreement in principle was achieved with the assistance of a mediator.
The plaintiffs sued in March 2022 in Stengl et al. vs. L3Harris Technologies Inc. et al. A federal court judge rejected the defendants' petition for dismissal in March 2023.
As of Dec. 31, 2022, the L3Harris Retirement Savings Plan, Melbourne, Fla., had $12.9 billion in assets, according to the latest Form 5500.
