ST. LOUIS — Jerry Schlichter, of the St. Louis firm Schlichter Bogard & Denton, has won a $12 million settlement in an excessive fee challenge involving Oracle Corp. (NYSE: ORCL).
The Schlichter firm will receive a maximum payout of almost $4.5 million under terms of the settlement, which was reached just before the case went to trial last week, Investment News reported.
The lawsuit, which was filed in January 2016 in federal court in Colorado, contended that software and technology company Oracle breached its fiduciary duty to 401(k) plan participants by including at least three investment options that underperformed their benchmarks and charged excessive fees. The options included the Artisan Small Cap Value Fund, TCM Small-Mid Cap Growth Fund and PIMCO Inflation Response Multi-Asset Fund.
The settlement involves almost 80,000 participants or beneficiaries of the plan, which had about $14.3 billion in assets at the end of 2018.
The settlement also requires Oracle to instruct Fidelity not to cross-sell any products or services to its plan participants for three years. Fidelity was not named as a defendant.
The Schlichter firm previously negotiated multimillion-dollar settlements in similar suits with Lockheed Martin, Boeing, ABB and the Massachusetts Institute of Technology. It has reached settlements or won awards totaling more than $1.5 billion in such litigation, including a $62 million settlement with Lockheed Martin, a $55 million settlement with ABB and a $57 million settlement with Boeing, according to the law firm.
Click here for more from the St. Louis Business Journal.
More Local News
- Asian Americans raise concerns about stereotyping during coronavirus outbreak
- BattleHawks players visit kids at St. Louis Children’s Hospital
- Arch Madness to continue as planned amid coronavirus concerns
- 'I just like helping people' | St. Louis man heading to Nashville to help tornado victims
- VA nurse facing additional charge of sexual abuse in St. Louis County
