Advance Auto Parts agreed to settle a lawsuit by current and former participants in a company 401(k) who alleged ERISA violations due to allegedly excessive record-keeping fees and imprudent management of investments.
Lawyers for both sides submitted an agreement-in-principle notice on Nov. 3 to the U.S. District Court in Roanoke, Va. The document didn't contain terms, which the parties said would be offered Dec. 19 for approval.
The agreement was reached via mediation, the document said.
The plaintiffs sued in October 2021 seeking class-action status for a series of allegations, including the charging of excessive record-keeping fees; offering expensive share classes when identical, cheaper ones were available; and failing to negotiate lower record-keeping expenses.
The Advance Auto Parts Inc. 401(k) Plan, Roanoke, Va., had assets of $901.6 million as of Dec. 31, 2022, according to the latest Form 5500.