Cumulus Media Inc., has agreed to pay $1 million to settle a lawsuit filed by seven former employees who said the fee practices and investment selections of the company's 401(k) plan violated ERISA.
The settlement, which requires court approval, was filed Tuesday in a U.S. District Court in Atlanta in Dean et al. vs. Cumulus Media Inc. et al.
"Defendants specifically deny any such liability and wrongdoing and state that they are entering into this settlement agreement to eliminate the burden and expense of further litigation," the settlement document said.
The plaintiffs believe that all claims "have merit," but they decided to settle due to "the inherent risks, difficulties and delays in complex ERISA litigation such as this," the document said.
The plaintiffs sued in December 2022, alleging that the defendants "did not try to reduce the plan's expenses or exercise appropriate judgment to scrutinize each investment option that was offered in the plan to ensure it was prudent," the complaint said.
A similar lawsuit, filed in February 2020 by two different plaintiffs was dismissed by the U.S. District Court in October 2021. The plaintiffs appealed in November 2021 to the 11th U.S. Circuit Court of Appeals in Atlanta. The appeal was voluntarily dismissed in December 2022 because "the former plaintiffs' claims, which are identical to the named plaintiffs' claims, are included in the settlement of the action," the settlement document said.
The Cumulus Media 401(k) Plan, Atlanta, had $260 million in assets as of Dec. 31, 2021, according to the company's most recent Form 5500 filing.
No comments:
Post a Comment