Reliance Trust’s $40M Excessive Suit Settlement Has Been Approved

One of the largest 401(k) excessive suit settlements—$39.8 million—has been approved.

The settlement arose in a case involving Reliance Trust and its role regarding the Insperity 401(k) Plan, in which the plaintiffs—represented by the law firm of Schlichter Bogard & Denton—were enrolled. The plaintiffs are four participants in this plan for Insperity clients. However, the settlement did not actually involve Insperity but was an agreement between Reliance Trust and the plaintiffs. 

Moreover, the $39.8 million settlement claimed to include a number of additional procedural changes regarding the plans and the role of Reliance Trust—changes that the settlement agreement acknowledged “have been satisfied (or effectively satisfied) through changes that have occurred with respect to the Plan.” However, as pointed out in the Insperity Defendants’ Response to the motion, “The Insperity Defendants are not making any monetary contribution toward the Settlement Amount, and have not made any changes to the Plan as a result of the Settlement between the Settling Parties.” 

Read the source article at National Association of Plan Advisors