Eaton Vance ERISA Breach of Fiduciary Duty Class Action – $3.45 Million Settlement

Case Type: Financial Services Litigation

Organization: Eaton Vance

On October 5, 2018, Sanford Heisler Sharp commenced a class action lawsuit in the District of Massachusetts against the Eaton Vance Corp. over claims the company breached its fiduciary duty under ERISA and committed prohibited transactions by using its $434 million retirement plan as a test vehicle for self-gain. Sanford Heisler Sharp alleged the company filled its 401(k) plan with expensive, poorly performing funds that earned fees for the company but deprived employees of millions of dollars in retirement savings.

Before any major litigation got underway, the parties agreed to settle the claims for $3.45 million on May 6, 2019. In June 2019, Notice of the Class Settlement was sent to 2,900 current and former plan participants. The Court granted final approval of the Class Settlement on September 24, 2019.

The deal benefited some 2,900 current and former participants.