O-I Glass Inc. has reached a $5 million settlement with employees who claimed the glass bottle manufacturer breached its ERISA fiduciary duty with respect to two of its 401 (k) plans.
Specifically, plaintiffs claimed the company retained "expensive and underperforming mutual funds" as investment options managed by O-I Glass' former affiliate, Harbor Capital Advisors, according to a settlement motion filed Feb. 23 in U.S. District Court in Toledo, Ohio.
The settlement is expected to benefit some 10,300 people who have been covered by O-I Glass' retirement plans since July 22, 2016.
On June 30, 2023, the presiding judge in Schaf vs. O-I Glass Inc. et al., U.S. District Court Judge Jack Zouhary, rejected a request by O-I Glass to dismiss the lawsuit, saying "the complaint provides sufficient benchmarks and outlines several facts that, if true, could demonstrate defendants were imprudent or disloyal" based on ERISA guidelines.
O-I Glass Inc. is the successor to Owens-Illinois Inc., a maker of glass containers. Harbor Capital was previously owned by Owens-Illinois and was initially created to manage the company's pension plans. Owens-Illinois sold Harbor in 2001 to Robeco Groep.
"Since the sale, Harbor has continued to manage the assets of the plans and O-I Glass' defined benefit plans," the lawsuit said.
Owens-Illinois Inc. Long-Term Savings Plan had $309 million in assets and Owens-Illinois Inc. Stock Purchase and Savings Program had $425 million in assets, according to Form 5500s for the year ended Dec. 31, 2021. Both plans are based in Perrysburg, Ohio.
