Iron Mountain Settles 401(k) Fee Suit

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Iron Mountain 401(k) Fee Suit

Iron Mountain Inc., a global storage and information management firm, has agreed to settle a proposed class action alleging it imposed excessive recordkeeping fees on its $650 million 401(k) plan. Filed in Massachusetts federal court, the lawsuit argued that Iron Mountain’s mismanagement of retirement plan fees cost employees millions in potential savings.

Iron Mountain and former employees Rodney Barnett and Heather Wolff jointly informed the court Wednesday of an agreement to resolve the claims, though specific terms remain confidential. Both parties intend to finalize the settlement in coming weeks, with a motion for preliminary approval expected by Dec. 11.

Workers Claimed Excessive Fees Violated Fiduciary Duties

Barnett and Wolff filed the suit in May, accusing Iron Mountain of violating the Employee Retirement Income Security Act (ERISA) by allowing excessive fees to burden employees’ retirement accounts. According to the lawsuit, Iron Mountain charged a 220% premium for recordkeeping and administrative services, a cost that fell outside ERISA’s mandate that fiduciaries act prudently in managing retirement plans.