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Ricoh USA Inc. informed federal judges in Pennsylvania Thursday that it has reached settlements to resolve two class-action lawsuits claiming the company mismanaged its $2 billion retirement plan, including one case in which excessive fee allegations were revived by the Third Circuit.

The suits, which targeted the American subsidiary of the Japanese technology giant, were filed in coordination with former employees alleging violations of the Employee Retirement Income Security Act (ERISA). The settlements end two proposed class actions — one led by Cleo Batten and the other by Keith Kruchten — which accused Ricoh of overcharging plan participants and misusing forfeited funds to cover the company’s contribution obligations rather than plan management costs.

Settlement Details and Next Steps

While financial details of the agreements remain undisclosed, the parties said they plan to consolidate the Batten and Kruchten actions for settlement purposes. They anticipate filing for preliminary court approval by Jan. 15, 2026.

In the 2022 Kruchten suit, plaintiffs alleged Ricoh cost employees millions in retirement savings by imposing excessive management fees ranging from $61 to $103 per year per participant, compared to $23 to $36 in comparable plans. U.S. District Judge Juan R. Sánchez initially dismissed the case, citing differences in the types of plan management services provided. After an amended complaint was again dismissed in April 2023, Kruchten appealed.

In July 2024, the Third Circuit ruled the lower court had acted prematurely, stating that factual claims regarding fee comparisons should proceed through discovery.

Batten’s Claims on Plan Mismanagement

Batten’s August 2022 lawsuit centered on Ricoh’s fiduciary duties related to its retirement plan investment portfolio. He alleged the company retained low-yield guaranteed investment contracts (GICs) in the stable value fund instead of higher-return alternatives, which benefited insurance providers over plan participants.

Batten also claimed Ricoh improperly used forfeited funds — unvested amounts abandoned in the plan — to cover its own contribution obligations rather than reducing participant fees, violating the duty of prudence.

In a motion to dismiss, Ricoh argued Batten’s claims mirrored those in Kruchten’s lawsuit and contended the GIC comparisons and forfeiture allegations lacked merit under ERISA.

Legal Representation

The plaintiffs are represented by Mark K. Gyandoh, James A. Wells, Giulia T. Conboy, Donald R. Reavey, James A. Maro of Capozzi Adler PC, and Peter A. Muhic of Muhic Law LLC.

Ricoh USA is represented by Jeremy P. Blumenfeld, Keri L. Engelman, Matthew A. Russell, and Derek S. Franklin of Morgan Lewis & Bockius LLP.

Neither Ricoh nor the plaintiffs’ counsel provided comments Thursday.