Invesco Holding Co. agreed to pay $3.47 million to settle a lawsuit by participants in the company's 401(k) plan, who alleged ERISA violations.
The settlement of the class action lawsuit requires court approval. It is based on the lawsuit filed in May 2012, in which participants accused the plan executives of violating their fiduciary duties by stocking the plan with proprietary investment options and restricting investments in the plan's self-directed brokerage feature.
Defendants include several Invesco affiliates, subsidiaries, and executives who manage the 401(k) plan and provide products and services to it.
A federal judge granted Invesco's motion to dismiss the case in September 2019 but allowed the plaintiffs to file an amended complaint. The settlement was reached while the plaintiffs were preparing the amended complaint.
In addition to the settlement payment, Invesco has agreed to "modify the self-directed investment account" so participants can purchase non-proprietary exchange-traded funds. The Invesco 401(k) Plan, Atlanta, had assets of $975 million as of Dec. 31, 2018, according to the latest Form 5500 filing. "Invesco settles 401(k) ERISA case for $3.47 million" www.pionline.com (Mar. 11, 2020).