The pact okayed by Chief U.S. District Judge Harvey Bartle III of the U.S. District Court for the Eastern District of Pennsylvania not only includes a cash settlement to be paid out to about 36,000 Comcast workers involved in the suit, but calls for the company to make changes in its 401(k) program, including:
- provide investment advisory services to all class members for a period of three years;
- send annual diversification notices to all plan participants holding more than 10% of their account balance in company stock;
- provide annual fiduciary training for members of the plan’s investment committee; and
- take no action to limit plan participants’ ability to sell their Comcast stock for three years.
In April, Bartle certified the suit filed by lead plaintiff Janell T. Moore as a class action. Moore alleged that because the value of company stock was inflated, it was no longer a prudent investment for the 401(k) plan (see Court Clears Path for Stock Drop Class Action).