Participants in a 401(k) plan managed by Gucci America Inc. agreed to settle a lawsuit with plan fiduciaries for $1.2 million, of which $395,000 will be paid to plaintiffs' attorneys.
The settlement, which must receive court approval, was reported June 21 to the U.S. District Court in Newark, N.J., in the case of Hay et al vs. Gucci America Inc. et al.
Participants sued plan and corporate officials in September 2017, alleging they selected expensive investment options when similar, cheaper choices were available and that they failed to use cheaper share classes for existing investments. They also accused plan managers of "misleading and inaccurate disclosures" pertaining to investments and plan expenses, according to the court documents.
The proposed settlement document for the class action suit said there are more than 8,000 current and former participants.
Gucci is owned by the Paris-based fashion conglomerate Kering Group, whose U.S. unit, Kering Americas Inc., is one of the defendants.
The Gucci Americas Inc. Retirement and Savings Plan, now known as the Kering Americas Inc. Retirement and Savings Plan, Secaucus, N.J., had assets of $142.4 million as of Dec. 31, 2017, according to the latest Form 5500 filing.