Koch Industries pays $ Four million in retirement class lawsuit
Koch Industries Inc. will pay $ 4 million to seek a new record holder for the annuity plan in a class action lawsuit against the plan’s administration fees, according to filings filed in the Northern District of Georgia.
The transaction is expected to benefit approximately 101,000 people covered by three Koch Industries-affiliated pension plans. In addition to the cash payment, the company agreed to tender the records of the plan within 180 days of the settlement becoming effective, according to filings filed in the U.S. District Court for the Northern District of Georgia on Monday.
The lawsuit alleges that Koch’s plans – which totaled more than $ 8 billion during the period in question – charged excessive administration fees that were inconsistent with the broader pension industry. The plan participants tried to hold Koch and his pension committee liable for violations of the Employee Retirement Income Protection Act.
Koch moved the lawsuit to be dismissed last fall, arguing that the case law of the U.S. Court of Appeals for the Eleventh District requires attendees to exhaust the plans’ internal appeals process before bringing those claims to court. Judge Mark H. Cohen has not ruled on the motion.
The case is one of more than 90 proposed class actions against the 2020 retirement plan fees. Some defendants have signed early settlements, including health technology company Cerner Corp. ($ 4.05 million), the global chemical distributor Brenntag North America Inc. ($ 2.3 million.). ), the Philadelphia-based engineering company CDI Corp. ($ 1.8 million), technology services company Serco Inc. ($ 1.2 million), and defense company ManTech International Corp. ($ 1.2 million).
The Koch Plan participants are represented by Nichols Kaster PLLP, Austin & Sparks PC and Sanford Law Firm PLLC, who will receive legal fees of $ 1 million if the deal is approved.
Koch is represented by Jones Day.
The case is children v. Koch Indus., Inc., ND Ga., No. 1: 20-cv-02973, Request for Settlement Approval dated 12/7/21.