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In a legal haul that has rumbled through the courts like one of its own 18-wheelers, Old Dominion Freight Line Inc. has agreed to a $1.9 million settlement to resolve allegations that it let retirement plan vendors overcharge thousands of workers. The deal, pending judicial approval, comes after nearly a year of heated Employee Retirement Income Security Act (ERISA) litigation accusing the trucking giant of failing to control 401(k) plan expenses.

The Allegations: Missed Leverage, Mismanaged Fees

Filed in September 2023 by employee Kerry Carter and former workers David Sealy and Harvey Davis, the class action claimed Old Dominion breached its fiduciary duties by allowing inflated fees for investment management and recordkeeping. The plaintiffs argued that Old Dominion, overseeing a $1.8 billion retirement plan with nearly 27,000 participants as of the end of 2022, failed to negotiate lower rates despite the plan’s substantial size and bargaining power.

Between 2017 and 2023, the plan allegedly hemorrhaged an estimated $32 million — $22 million in excess investment fees and another $10 million in recordkeeping costs — all because, plaintiffs say, Old Dominion didn’t fight for better terms.

“Fiduciaries must negotiate as if their own money was at stake,” the workers said in court filings. “Too often, they don’t — and participants pay the price.”

Legal Maneuvering and a Judicial Pushback

In December 2023, Old Dominion moved to dismiss the lawsuit, claiming the plaintiffs’ figures were flawed. But in a blow to the company, U.S. District Judge Thomas D. Schroeder denied the motion in May 2024, finding the complaint was rich in factual detail and plausibly outlined a breach of fiduciary responsibility.

Judge Schroeder made it clear: at this stage of litigation, the facts as pled are to be taken as true — no shortcuts for corporations on the defensive.

Mediation and a Deal in the Making

A full-day mediation session with Robert A. Meyer in May 2025 didn’t result in an immediate agreement, but the two sides eventually circled back and accepted Meyer’s proposed resolution. Just days later, the parties alerted Judge Schroeder that a settlement was on the table.

This week, the workers formally asked the court to preliminarily approve the deal, hailing it as a "strong result under the circumstances." The $1.9 million payout, while representing about 38% of the potential monetary recovery, is considered significant for a case of this type and scale.

Class Representation and Legal Teams

The plaintiffs are represented by: