Boeing Settles 401(k) Lawsuit for $57 Million

Boeing Co (BA.N) said it had agreed to pay $57 million to settle a lawsuit in which employees accused the company of mismanaging their 401(k) retirement plan.

The settlement amount is the second-highest ever in excessive 401(k) fee litigation, Schlichter Bogard & Denton, the law firm representing the employees, said in an emailed statement on Thursday.

Lockheed Martin Corp (LMT.N) paid $62 million to settle a similar lawsuit this year.

The Boeing lawsuit, filed in 2006, contended that the company had breached its fiduciary duties to employees by allowing the record-keeper to charge employees and retirees excessive fees and placing expensive and risky investment options in the plan, which dampened investment returns.

Boeing denied wrongdoing, but said it had settled to avoid the expense and uncertainty of litigation.

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