Stantec Consulting Services has agreed to settle an ERISA lawsuit by two former 401(k) plan participants who alleged the plan failed to offer lower-priced mutual funds and failed to offer cheaper collective investment trusts instead of comparable mutual funds.
The agreement in principle was cited in an Oct. 9 letter to a federal court judge in Phoenix by plaintiffs' attorneys. Terms will be provided within three weeks, said the letter in the case of Gotta et al. vs. Stantec Consulting Services Inc. et al.
The plaintiffs sued in September 2020 and the defendants subsequently requested a dismissal. Chief U.S. District Court Judge G. Murray Snow rejected the request in May 2021.
The Stantec 401(k) Plan, Chandler, Ariz., had $1.82 billion in assets as of Dec. 31, 2021, according to the latest Form 5500.