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.
