WakeMed employees have sought final approval of their $ 975,000 group settlement from a federal judge in a lawsuit claiming the North Carolina healthcare system pension plan offers expensive mutual funds and charges fees excessive administrative procedures.
The deal, which received preliminary approval from Judge James C. Dever III in May, is expected to benefit more than 13,000 participants in WakeMed’s $ 715 million pension plan. It also requires the healthcare system to seek proposals from third-party vendors to ensure the plan receives the best deals in investment advice, record-keeping and administrative services, according to a petition filed in court on Wednesday. US District of the Eastern District. from North Carolina.
WakeMed employees are also seeking an award of one-third of the settlement amount – $ 325,000 – as attorneys’ fees for their attorneys at Robbins Geller Rudman & Dowd LLP, Capozzi Adler PC and Crumley Roberts LLP.
WakeMed is accused of filling its retirement plan with expensive mutual fund stock classes when cheaper alternatives were readily available. The company also failed to properly monitor and control the plan’s excessive administrative and record-keeping costs, according to participants.
WakeMed was the first for follow-up on these alleged violations in December 2020. This case was voluntarily abandoned, and the named plaintiff joined the lawsuit here, which was both deposit and settled in April.
WakeMed is represented by Fox Rothschild LLP and Morgan, Lewis & Bockius LLP.
The case is Conté vs. WakeMed, EDNC, n ° 5: 21-cv-00190, request for approval of final regulation 12/1/21.