A federal judge has granted preliminary approval to the $17 million settlement of a lawsuit that alleged excessive fees in the 401(k) plan Philips North America offered to employees.
In the lawsuit, filed in May by St. Louis law firm Schlichter Bogard & Denton, Philips workers and retirees said the company used high-cost retail mutual funds when it could have qualified for cheaper institutional funds. The suit also alleged the plan collected excessive administration fees.
Philips, the Netherlands-based consumer products company, didn’t admit any wrongdoing in the settlement.
The settlement received preliminary approval on Tuesday. A final hearing is set for October.
Read more: St. Louis Post-Dispatch