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Printing and marketing giant Quad/Graphics Inc., now known simply as Quad, has agreed to an $850,000 settlement to resolve claims that it allowed its $2.4 billion retirement plan to be drained by excessive administrative fees — a financial misstep that allegedly cost employees tens of millions in lost savings.

The class action, led by Sharita Shaw, accused the company of failing to act prudently and neglecting its fiduciary duty under the Employee Retirement Income Security Act (ERISA). The lawsuit claimed that Quad’s inaction let inflated costs quietly erode workers’ retirement benefits over several years.

Judge Approves Deal, Citing Fairness and Adequacy

In a ruling on Tuesday, U.S. District Judge Pamela Pepper gave preliminary approval to the agreement, describing it as “fair and adequate.”

“The parties negotiated an $850,000 recovery, which represents an 18.9% recovery of the plaintiff’s estimated losses,” Judge Pepper wrote, underscoring the deal’s reasonableness.

The settlement will be distributed among approximately 25,000 class members, including all participants and beneficiaries of the retirement plan from Oct. 30, 2014, through the date of final approval, according to court filings.

Allegations of Inflated Costs and Mismanagement

Shaw filed the lawsuit in 2020, alleging that Quad overpaid for recordkeeping services by as much as 116% above market rates. The complaint said the company should have solicited competitive bids to manage the plan’s costs more efficiently, as required by fiduciary responsibility laws.

Instead, according to Shaw, the company’s failure to monitor and manage fees resulted in the retirement plan being “bogged down by unnecessary costs,” ultimately shortchanging employees of their deserved savings.

A Lesson in Corporate Accountability

The settlement, while not an admission of wrongdoing, highlights the growing scrutiny around retirement plan management and the fiduciary responsibilities of large employers. Legal experts say similar suits have swept across corporate America as employees become more aware of hidden administrative fees impacting long-term savings.

With this agreement, Quad seeks to close a costly chapter in its benefits oversight saga — a reminder that in the financial chessboard of corporate responsibility, even minor moves in neglect can ripple into multimillion-dollar consequences.