Nextep Inc. and former participants in a 401(k) plan proposed by the company have agreed to settle a lawsuit that alleged Nextep and its trustees violated ERISA in administering the plan.
Notice of a tentative agreement was filed Tuesday in a U.S. District Court in Norman, Okla. Terms were not disclosed. The terms are expected to be presented to the court by July 15, according to the court filing in Loomis et al. against Nextep Inc. et al.
Nextep is a professional employers’ organization, the complaint states. The Nextep 401(k) Retirement Savings Plan, Norman, Okla. is a multi-employer plan, which had $335.2 million in assets as of December 31, 2020, according to the latest Form 5500.
The plaintiffs, who are seeking class-action status, filed suit in March 2021, alleging that the defendants failed to cut plan expenses and assess the prudence of each investment option in the range. of the regime. Settlement negotiations began in May 2021, according to the notice of settlement.
The plaintiffs also argued that the defendants did not control administrative and record-keeping expenses. The complaint covers the period beginning March 10, 2015, when the alleged violations of ERISA began.