Nextep Inc. and former participants in a 401(k) plan offered by the company have agreed to settle a lawsuit that claimed Nextep and its fiduciaries violated ERISA in the management of the plan.
The notice of an agreement in principle was filed Tuesday in a U.S. District Court in Norman, Okla. Terms weren't revealed. The terms are expected to be presented to the court by July 15, according to the court filing in Loomis et al. vs. Nextep Inc. et al.
Nextep is a professional employer organization, the complaint said. The Nextep 401(k) Retirement Savings Plan, Norman, Okla. is a multiple employer plan, which had $335.2 million in assets as of Dec. 31, 2020, according to the latest Form 5500.
The plaintiffs, who are seeking class-action status, sued in March 2021, alleging that defendants failed to reduce plan expenses and failed to assess the prudence of each investment option in the plan's lineup. Settlement negotiations began in May 2021, according to the settlement notice.
The plaintiffs also maintained that the defendants didn't control administrative and record-keeping expenses. The complaint covers the period starting March 10, 2015, when the alleged ERISA violations began.
