In a pivotal legal showdown, a Texas federal judge has granted class certification to more than 10,000 current and former Shell Oil Co. employees who claim the energy titan mishandled their $10 billion 401(k) plan. But while the workers scored a procedural victory, the court refused to declare an early winner in the high-stakes battle.
U.S. District Judge Jeffrey Vincent Brown issued the ruling Monday, endorsing a 2023 recommendation from Magistrate Judge Andrew M. Edison. The lawsuit, built on allegations of financial mismanagement under the Employee Retirement Income Security Act (ERISA), now moves forward with collective momentum. However, Judge Edison had previously cautioned that neither side deserved summary judgment due to the complexity of disputed facts.
Despite objections from both Shell and the workers, Judge Brown found the magistrate’s analysis solid, ensuring that the case barrels forward with its certified class.
Workers Accuse Shell of Financial Missteps
The legal battle began in 2020 when three employees launched claims that Shell failed to rein in excessive recordkeeping fees, mishandled plan rebates, and improperly used plan data. They also argued that Shell neglected to monitor the financial stability of its vast investment portfolio.
