Coca-Cola Consolidated has settled an Employee Retirement Income Security Act lawsuit filed against the company for its 401(k) plan.
The settlement includes $3.5 million that will be paid to the participants who were a part of the class action. lawsuit.
The lawsuit included allegations that the plan used the actively managed Fidelity Freedom Funds target-date funds rather than index funds. The plaintiffs said the funds were too “high risk” for the plan’s participants, as well as expensive. They also allege the recordkeeping and administrative costs of the plan were excessive.