Omnicom Group Inc. agreed to settle a lawsuit filed by current and former participants in a company 401(k) plan, who had alleged violation of ERISA due to the plan's high costs and inadequate selection of investment options.
The notice of a tentative settlement was filed Feb. 24 in U.S. District Court in New York, heading off a trial that was scheduled to begin Monday. Terms were not disclosed.
"Following extensive negotiations and with the assistance of experienced mediators, the parties reached an agreement … to settle this case in its entirety," the notice said.
"A formal settlement agreement will be drafted and presented to the court for approval as soon as practicable."
Two similar ERISA lawsuits against Omnicom were filed in May 2020 and July 2020, seeking class-action status. They were consolidated into In re Omnicom Group Inc. ERISA Litigation.
In August 2021, U.S. District Judge Colleen McMahon rejected many of the arguments filed by Omnicom to dismiss the lawsuit, which included allegations of excessive record-keeping fees and of failing to offer less expensive collective investment trusts instead of mutual funds.
The Omnicom Group Retirement Savings Plan, New York, had $4.2 billion in assets as of Dec. 31, 2021, according to its latest Form 5500.