R.R. Donnelley & Sons Inc. has agreed to settle a lawsuit by former employees who accused the company and its fiduciaries of violating ERISA by charging high record-keeping fees in a 401(k) plan.
Lawyers for the plaintiffs and defendants filed a notice with a U.S. District Court in Chicago Oct. 13 disclosing an agreement in principle had been reached following mediation. Terms will be revealed by Nov. 22 in the case of Tolomeo et al. vs. R.R. Donnelley & Sons Inc.
The plaintiffs sued in December 2020, seeking class-action status. Some of their allegations about excessive managed account fees and lack of transparency were later withdrawn by the plaintiffs.
The company sought dismissal of all complaints, but a federal judge in Chicago rejected the request in May saying plaintiffs' allegations of high fees and an imprudent selection process were sufficient to go to trial.
RR Donnelley Savings Plan, Chicago, had $1.4 billion in assets as of Dec. 31, 2021, according to the latest Form 5500.