Compliance February 11, 2011

Court Gives Final Approval in RadioShack Fiduciary Breach Case

February 11, 2011 (PLANSPONSOR.com) – A federal judge in Texas has given final approval to a $2.4-million settlement of a class-action suit alleging RadioShack used Putnam mutual funds in its 401(k) plan even though they were overpriced and underperforming.
Reported by

U.S. District Judge Terry R. Means of the U.S. District Court for the Northern District of Texas ruled that the settlement pact was fair and ordered it carried out.

In his approval order, Means awarded class Representatives Jeffrey Cormier and Robert Outlaw $10,000 each, and named plaintiffs, Alan Goldstein, Keith Reiders, and Robert Maxwell, $2,500 each. Means also awarded attorneys representing the class $800,000 in fees and $94,131 in costs and expenses.

The case had originally included allegations of a separate fiduciary breach over the inclusion of company stock shares after they were no longer prudent to include in a 401(k) plan, but Means dismissed those counts (see Radio Shack Fiduciary Breach Case Plaintiffs Seek Class Action Nod).  

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