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.
