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St. Louis firm reaches $17 million settlement in Philips 401(k) suit

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

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