Westlaw News

BB&T agrees to pay $24 mln to settle lawsuit over 401(k)

North Carolina-based BB&T Corp has agreed to pay $24 million to resolve a lawsuit accusing it of loading employees’ 401(k) retirement plan with poorly performing mutual funds that the bank managed and collecting millions of dollars in excessive fees.

The agreement, which requires court approval, settles a 2015 lawsuit accusing BB&T of violating the Employee Retirement Income Security Act (ERISA) by managing the 401(k) plan for its own self-interest instead of for the sole benefit of plan participants, as the law requires. The settlement was disclosed in a filing on Friday in Greensboro, North Carolina federal court seeking preliminary approval of the deal.

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