Serco Inc. agreed to a $1.2 million settlement in a lawsuit involving the company's 401(k) plan.
The settlement, reached Tuesday, now awaits court approval, confirmed Arthur Stock, a senior attorney at Greg Coleman Law serving as counsel for the plaintiff.
The suit, filed Jan. 28, 2020, in U.S. District Court in Alexandria, Va., by a former participant in a 401(k) plan offered by Serco, alleged that that plan managers breached their fiduciary duties by offering high-fee investment options, failing to offer less-expensive share classes and failing to monitor investments in the plan's lineup, in violation of ERISA.
Serco, based in Herndon, Va., is a provider of information technology services management.
Glasscock et al. vs. Serco Inc. said that fees for the plan's investment options were "excessive when compared with other comparable 401(k) plans," and that the plan selected investment options with higher fees compared with lower-cost share classes offered by the same providers.
The lawsuit also said that Serco fiduciaries "failed to continuously monitor the investment performance of its plan options against applicable benchmarks and peer groups," and that the managers "failed to identify and replace underperforming investments with better-performing and reasonable priced options."
A spokesman for Serco could not be immediately reached for comment.
Serco Inc. 401(k) Retirement Plan, Herndon, Va., had $335 million in assets as of Dec. 31, 2018, according to the latest Form 5500.