Univar Solutions, a specialty chemical and food ingredient distributor owned by Apollo Global Management, will pay $1.1 million to settle claims that its 401(k) plan charged excessive record-keeping and administrative fees.
Former participants sued the company and its fiduciaries in January 2022 in Coyer et al. vs. Univar Solutions USA Inc., when Univar was still a public company. Apollo, which is not a defendant in the case, acquired Univar in 2023.
Although a federal judge in Chicago dismissed, in September 2022, a claim that the plan retained “imprudent” investments, he allowed to continue the allegations about ERISA violations due to “unreasonably excessive” record-keeping fees and the defendants’ failure to monitor record-keeping and administrative expenses.
The class-action settlement agreement, which requires court approval, was filed by plaintiffs’ attorneys Aug. 15 in a U.S. District Court in Chicago.
“Resolving the action at this juncture allows the parties to avoid continued and costly litigation, which could result in a recovery less than that provided by the settlement or no recovery,” the settlement document said.
Univar Solutions 401(k) Plan, Downers Grove, Ill., had $882 million in assets as of Dec. 31, 2022, according to the latest Form 5500.
