Rare Pentegra 401(k) Jury Verdict Is ERISA Plaintiffs’ Roadmap

A $38.8 million verdict for participants in a 401(k) plan administered by Pentegra Services Inc. is a step forward for ERISA plaintiffs eager for the rare chance to present a case under the federal benefits law to a jury.

Pentegra and the plan’s board of directors breached their fiduciary duties by causing the plan to pay unreasonable administrative fees, the eight-person jury unanimously concluded April 23 after a trial lasting about a week in the US District Court for the Southern District of New York. The 26,000-person class action centers on fees charged by a $2.1 billion retirement plan covering ...