Packaging Corp. of America has agreed to pay $1.3 million to settle claims that the company and its plan fiduciaries violated ERISA in the management of a company 401(k) plan.
The settlement was announced Sept. 22 in a document filed with the U.S. District Court in Lansing, Mich., in Miller et al. vs. Packaging Corp. of America Inc. et al.
Following mediation in early July, the parties reached an agreement in principle, which was later prepared as a proposed settlement that requires court approval, according to the document filed by the plaintiffs’ attorneys.
“Defendants join in the relief requested by plaintiffs’ motion for preliminary approval of settlement,” the document said.
Former participants sued in March 2022, citing a series of alleged ERISA violations and seeking class-action status.
Twelve months later, a federal judge dismissed four of the claims but allowed two other claims to proceed to trial — the selection and monitoring of investment options and the failure to monitor fiduciaries relating to investment-option selection.
Packaging Corp. of America Retirement Savings Plan for Salaried Employees, Lake Forest, Ill., had $1.5 billion in assets as of Dec. 31, 2021, according to the latest Form 5500.