Northeastern University has agreed to pay $725,000 to end a proposed class action accusing the institution of violating federal benefits law by mismanaging its employee retirement plan — specifically by allowing excessive fees and failing to remove underperforming investment options, according to a Wednesday filing in Massachusetts federal court.
The lawsuit, filed under the Employee Retirement Income Security Act (ERISA), alleged that the university breached its fiduciary duties by neglecting to protect workers’ savings. The deal, if approved, would resolve claims that Northeastern failed to act prudently in overseeing its 401(k) plan, allegedly costing employees thousands in lost returns.
Plaintiff Seeks Court Approval to End the Case
Oscar T. Brookins, the named plaintiff and a participant in the plan, urged the court to grant preliminary approval of the agreement, calling it a fair resolution that provides “meaningful relief” for university employees and retirees.
According to the filing, once attorney fees and administrative costs are deducted, the remaining settlement funds will be distributed among plan members based on their individual account balances. The proposed class includes anyone who participated in Northeastern’s retirement plan from June 30, 2016, through the final judgment date — a group numbering in the thousands.
